I stash clothes that aren't wearable anymore. There's a bit of pack-rat in me, I know, but it's hard to throw things away when I think of ways they could possibly be used for something else.
I made a new pair of pants for James out of an old thermal shirt. We got the shirt last year at a thrift store in Virginia while making a mad dash for warm clothing in July. We were going to visit Skyline caverns, which happen to be a cozy 40 something degrees, and hadn't packed any warm clothes. The thrift store had virtually no sweatshirts, and a very mis-shapen, large-ish boy's shirt was just going to have to make do.
Now it'll make do as some little pants, and a reminder of our little family vacation :)
A pretty cozy fellow if you ask me.
Another re-purpose. I picked up a wool sweater last Spring when the local thrift store put all it's Winter clothes on clearance (I also picked up two cashmere sweaters at the same time!) I was planning on taking the sweater apart and using the wool for another project, but look at it - such pretty cables. So I shrunk it just a little more and made it into a little pillow.
I still have a whole pile of Dan's old shirts that have stains or holes or both. I feel more re-purposing coming on.