Here's a link with some good info: http://knitting.about.com/library/blbeadknit.htm
I've made beaded knit jewelry on 0000 needles - not for the weak of eyesight! It was fun, and did turn out to be wearable.
With any beaded knitting, you have to string the beads on your yarn before you begin, and that can be the most boring part. If you have no pattern in mind, I'd play with some beads and fiber and see what you have that works best together, then count how many beads you've used and how much fiber to get a guesstimate.
If the beads are heavy, there will be a weight factor, and if they have sharp edges, they can eventually cut the fiber you knit them on. Check your local craft store to see what they have for stringing materials.
I did no fancy stitches with mine, just let the beads take center stage.
Hope this helps!