Out with the old and in with the new...

I found a cool blog on Yahoo Green today called New Dress A Day. The writer of this blog is going to make a new dress everyday for a year... and she is doing it on a budget of 1 dollar a day using recycled clothing from thrift stores.
Now I don't know much about the art of making clothes... but this seems like a really cool and interesting project... and it got me thinking... What kind of recycled materials can I incorporate into my crafts? How can I make something new out of something old? And how can I make something that is original out of something that already has a purpose and form? I have a few ideas already... but I still have a lot of thinking to do...