I was inspired to sew my own knitting needle holder by this girl. The pattern I drew for it is here. It holds straight needles in the upper tier and circulars in the lower tier. The top flap folds down, then the whole thing folds into thirds for easy transportation. Best of all, it requires a small amount of fabric, but it'll still occupy a decent amount of time. I made it out of sparkly denim and lined it with a red/blue cotton weave.

All my needles in their new home

Case open with the flap down

Detail of ribbon attachment.

I sewed two 16 inch pieces of ribbon on the outside of the case to close it. I sewed each piece on so that there was a short end (4 inches) and a long end (12 inches). The 12 inch end wraps around the case and ties to the 4 inch end. Make sense? Probably not...

Needle case tied closed with ribbons

Materials for knitting needle case (sparkly denim, cotton, and ribbon for tying it closed)