Daisy Hill Weaving Studio: Stash Reduction Rag Rugs - a commenter says - I don't sew rag strips. I cut the ends at a 45 to 60 degree angle and just overlap them. Denim has been the most popular rag. I started using 1" strips and reduced that to 3/4" to smooth out the selvage. Have the most fun with knit shirts. There I use 1/2" strips and get a blanket weight product. Nice mats and runners and light weight rugs.
Second Scarf by Nonni Mariella, via Flickr - saved this in my Ravelry favorites. I like the black warp with the first few picks at beginning/end being black to balance the scarf. Then the rest woven in Homespun.