Head over to One Little Minute for a tutorial showing how to adapt a basic t-shirt pattern to turn it into a dress. She shows how to make a simple A-line t-shirt dress (wear it plain, or belted), but my favorite is the version with a circle skirt. I could wear a dress like that every day and be happy. Her post is part of the Stretch Yourself series about sewing knit fabrics. Go to One Little Minute for the tutorial.
[photo from One Little Minute]