I understand both of you perfectly, Aprilbetty! I so appreciate this and I am going to go with the first sequence you gave, Jints! I love the diagonal idea as well and will be doing one like that as well.
Changing colors makes the row kinda wavy, so am going to place that row at the bottom of the bag and use the 6th row (BO) for the top. I've decided, since this wave happens, I will make two "Plates" consisting of 8 blocks by 6 row blocks. Using your sequence, I was able to separate all the colors without touching and it give it a nice patchwork affect. I want this to be my knitting bag and make it stand out!