Okay, so my first real knit project is about a third of the way done. The scarf I tried to knit a couple of years ago doesn't count since I never got past the first few rows (due to frustration).
I'm making a washcloth from the Annie's Attic Cheery Dishcloths to Knit, using the Pistachio Nut Surprise pattern with Peaches and Cream Lemon-Lime cotton yarn. I got the downloadable version of the booklet from e-patternscentral.com and was using a different pattern from there but I had to keep frogging it and got a bit frustrated. This pattern is a bit less complicated and going quite well.