The bag is not in the round, it's knit flat. (Or wait- I can't even remember how I did it. Maybe it is in the round. ) Really, you've never knit in the round? My join is never very smooth, but I always manage to fix it when I weave in the ends. So you've never done socks? I've only done two pair, but I love them.
I tried knitting a camera strap from stout cotton yarn, but I gave up. Soooo long and boring to knit.
I'm doing another pair of these slippers:
http://www.ravelry.com/patterns/library/felt-ballerina-slippers-ac-14
I've done them five or six times already, they make great gifts. I like to give them to the recipient unfelted, with instructions, because it's so fun to felt them yourself and that way they can get a perfect fit.
And I have a baby sweater on the needles for that nephew I mentioned. He's going to be grown by the time I finish, fortunately it's a Debbie Bliss pattern and so it's guaranteed to be freakishly oversized. There is lots of humorous speculation about the size of English babies, based on her sizing.