Recycle Chic: Nahui Ollin Bags
We would never have hassled our kids about leaving candy wrappers in the backseat if we'd known those wrappers could morph into such stylish totes . . .
Nahui Ollin uses a Mayan paper folding method to make gorgeous bags and accessories. And while they cost a little more than, say, a Whatchamacalit, they're comparable with less eco-friendly purse prices, which means we will opt for the one with an environmental conscience.
We love the camera bag, which is a comparatively cheap $37, and the oversized Surf 'n' Sand tote ($199) would make an adorable diaper bag.

Comments
I just posted a few days ago on my blog about a similar company called Ecoist that makes almost the same exact style handbags as Nahui Ollin. Ecoist also uses repurposed materials that would otherwise have ended up in the trash; they partner with manufacturers to buy off-spec labels and are able to create some beautiful designs from things as simple as Coca-Cola labels or Luna Bar wrappers.
Check out the pictures in my summary, I think you guys would like Ecoist:
http://exploringberkeley.wordpress.com/2008/09/29/recycled-material-handbags-and-more-from-ecoist/