OK here are the rules for the Baby Items Knit Along:-
(1) You can knit anything you like - clothes, toys, blankets, shawls or whatever and it doesn't have to be for a newborn baby. People welcome items for six to twelve months old babies and toddlers too.
(2) If you want to join in but there's no baby on the way amongst your friends and family, find out if there's a maternity unit in your area that would like knitted baby clothes and if so what they would like.
(3) When done we'd all love to see pictures of your work!
Remember that most people do like easy care items so if you want to use wool rather than baby yarn try to find one that is machine washable. And remember to keep a yarn label with the item you are giving so that the recipient knows how to wash it!
Any problems finding patterns, please ask!
http://www.bellaonline.com/articles/art3728.asp has more information on what a knit along is and how you can participate.