make swaddle me's they are very simple, and you can use valcro to fasten.
http://www.google.com/products/catalog?hl=en&q=swaddl...
make with left over flannel sheeting or cotton for summer
you can make over sized swaddle blankets - 45 x 45 inches. The ones in the stores are waaaay to small and does not last. they are only 30 x 30
make wash cloths from towels. wrap matching colors in a bundle with some ribbon.
Make taggy blankies. approx 20 x 20 inch squares, then sew labels or different textured ribbons on the edges.
pillow cases with taggies also works. You pin the ribbon sticking out like a tag, then sew the two pieces of fabric together.
make over sized pillows, kids love to flop on huge pillows scattered on the floor. Make bright fun colors!
hoody towels - use an adult towel, cut the top off and make a triangle hoody, sew back on. Sure you can find a pattern online somewhere
make cute tote bags from scrap fabric