More to explore:
Rag rug tutorial
Rag rug w/ fabric scraps,sheets and T-shirts :) Great colors!!
Making rag rug
Crocheted rag rug made from old sheets and t shirts.
DIY Rag Rug
Crochet rag rugs
How to crochet rag rugs part one: making sheet yarn.
Snowdrift Rag Rug, 2004 | Flickr - Photo Sharing!
rag rug tutorial
This is a great tutorial on making a braided rag rug.