Andrea, of Indigo Blue Designs, has posted a tutorial on how to make this bag.
The idea is from the book Brilliant Bags: 20 beautiful bags to stitch & love, by Deena Beverley.
I do have a few tips:
Remember that you can sew one scarf to another scarf (to another scarf...) or sew strips or pieces, to make a bigger (and often more interesting) fabric.
You can sew your scarf (or scarves) atop another fabric, or join your scarf to another fabric, to make a larger fabric.
You can back your scarf with interfacing, and thereby mimic a woven fabric (that's what I did for the t-shirt challenge too).
This way you can actually use a sewing pattern if you like (that's probably what I'm going to do for this challenge).
And don't stop there!
Remember, you can take it one step further and embellish.
The book Sew Vintage: New Creations from Found Fabrics, by Jennie Archer Atwood, has some examples of pillows made with scarves (but the idea easily translates to purses).
She used a beaded scarf and silk dupioni to make this pillow.
If you can't find a scarf already beaded, then add your own details!
Think embroidery also, and applique.