I so want to try this!  This is so cool, since I always have left over scraps of fabric!  I found this on Mademoiselle Chaos's blog.  I guess I'll have to use a chopstick or knitting needle as she suggests since I don't have a spinning machine.  I'll post as soon as I do!  Here are some pics from her blog, you can read more at her site how to do this here.

You start with fabric scraps that are cut lengthwise and then tie it onto a knitting needle or chopstick and start spinning.