Here is a pic after I have picked up stitches from around the sides of the bottom piece. Now I will start knitting in the round to make the sides. I'm excited at the progress I'm making, even though it's going slow. I'm hoping the bag turns out ok, since I've never double knit or felted before.

So here is a pic of the bottom of the bag. The green is the main color and the pink is the inside of the bag.