I finished market bag #2 (both are on Ravelry if you want the knitty pattern). Bag #1 has different handles (green one below). I took these to Walmart last week to shop and the lady commented how she'd never seen any so pretty and we were both surprised at how much it could hold and expand.
I made it with Sugar 'n Cream......which BTW is on sale at Michael's this week 4 for $5!
Pattern is free from Knitty, the Everlasting Bagstopper, only modified to have knitted handles: http://www.knitty.com/ISSUEsummer07/...erlasting.html
Same pattern, 1st bag: