Here are instructions for making a diaper bag.
http://www.bundlesoflove.org/diaperpattern.htm

How to make a baby romper (onesie) from a t-shirt.
http://www.wikihow.com/Make-a-Baby-Romper-from-a-T-Shirt

Instructions for making a newborn footed sleeper.
http://www.touchinglittlelives.org/nbsleeper.html

Here's a pattern for a footless sleeper for a preemie (4 to 6 lbs).
http://www.touchinglittlelives.org/prsleeper.html

Instructions for using a towel to make a bath robe for a baby. http://www.sewmuch4retirement.com/projects/babyrobe/babyrobe.html

Adult bath robe from towels.
http://www.ez-fit.com/bath_towel_robe.cfm

How to make a t-shirt dress.
http://www.hgtv.com/hgtv/cr_kid_crafts/article/0,1789,HGTV_3256_1371470,00.html

Baby Booties
http://www.heatherbaileydesign.com/Booties.html

A different kind of baby booties.
Click Here

Great instructions on how to bind a quilt
http://heatherbailey.typepad.com/photos/continuous_quiltbinding/index.html

Really nice headbands
http://www.heatherbaileydesign.com/Headband.html

Instructions for Peasant Skirt
http://www.jcarolinecreative.com/Merchant2/peasantskirt_inst.html

Simple baby quilt (three for one --very easy --although, you do need specialized quilting tools)
http://quiltmaker.com/patterns/patt230.pdf

Hand Towel Bib
http://www.mormonchic.com/crafty/dsh_twl_bibs.asp