I crocheted some washcloths to put in a basket for my Nana's 80th birthday. I used a natural looking ecru yarn by Sugar 'n Cream and this pattern. with an H hook, the 2.5oz skein got me two washcloths with maybe 12" left over! cuttin' it a little close so I'm glad I was able to make two finished washcloths and didn't have to buy another skein just for a few yards or something. I'd like to do more but I think each one took me about two hours to do, so if I have time and get a chance I might go get another skein and make two more.
I ironed some ribbon to a piece of 8.5"x11" freezer paper and ran it through my printer to make the label so she sees that I made them for her in case I don't get to see her open the basket. makes it cute, too :) there's so many tutorials out there that tell you how to use your inkjet printer to print on fabric, but here's one I found that covers the basics. I don't recommend using ribbon for smaller fonts since it spreads a little before the ink dries and looks fuzzy. since this is just packaging, and even though I heat set it after I printed, it won't make it through the wash. there is some kinda liquid stuff (Bubble Jet Set, I think) you can treat fabric with to make it washable after printing, but I haven't tried any yet.