Sure you can knit with wire! Some of the Society for Creative Anachronism folks knit chain mail (an then argue about whether it's historically correct...) Don't use any really fancy needles, becaue they get all scuffed up. Other than that, have fun.
i was also going to suggest the heart chaped box that Silver emntioned. infact i think there are a couple of other wire items on that site (fairy light or tealight covers and something a little more ... ahem ... adult).
This is my first attemp at wire knitting:http://www.knittinghelp.com/forum/sh...ght=wire+beads