I just finished the felting my first felted project, a small purse that I am going to give my mother for Christmas. She complains that she doesn't have any small, dressy purses, so I wanted to make her one. I used the pattern Suzanne's Purse. After it came out of the washer (and man, that thing did NOT take long to felt), I patted it with towels and stuffed it with grocery bags to maintain its shape while drying.
Right now, it doesn't look like much- just a plain black bag. But I plan on buying beads and sewing them on to the bag. For a first felting project, not bad!