I found this cool blog about making children's clothes last longer the blog is called Ruffles and Stuff.
There are several examples like this one pictured above. It has the cutiest ideas. I'm sure even making some adult clothes would work too. For more examples and how to's go over to: Rufflesandstuff.com.
This is a great how to make over clothes blog, check it out for more inspirations.
I found this all browsing on twitter! Cool!