I sewed another T-Shirt bag..
For instruction, please see link posted in my previous post.
It was sewn from the below T-Shirt from my sister in-law. Too small for me and decided to turn it into a bag for her.
I have attached a magnetic snap for the bag following the instruction link posted in http://anic-lohas.blogspot.com/2010/07/wallet-project-part-2-looking-for-tips.html. The lining is also from T-Shirts and I have strengthened the magnetic snap area with a strip from a thicker T-Shirt.
If you have old T-Shirts and can't find a new owner for them.. this is a good way to give them a new life. :)
Thanks to all the wonderful people who have shared their experiences and the nice tutorials.