YARN, GAUGE, AND MACHINE:  This bag may be knitted on any gauge of Japanese  style knitting machine. Passap knitters make it by  working with the standard gauge instructions  substituting a circular cast on for the one given and  use stitch size 8. 

This bag is a great introduction to felting and also a  good party project. If you have a houseful of people of  any age to entertain, knit a batch of bags ahead of  time, then have everyone participate in the felting and  decorating. The bag can contain a gift or be one. 
All machines use 2 strands of Jagger 2/8 wool or similar 100% wool yarn.

Run the 2 strands together through a single yarn  feeder and treat them as one yarn. All machines use  weights across the work and especially at the edges. 
Standard: use every other needle and stitch size 10  Mid-gauge: use every needle and stitch size 10  Bulky: use every needle and stitch size 2  All bags finish to about 5” tall X 8” wide