Ashely @ Make it and Love it had a tutorial on how to make this skirt out of worn out jeans. Since she has taken the time to type out the instructions I will just let you check out her post here for the details.
Here is my attempt. Luckily you can't see it up close, but for a gal who doesn't know how to sew, I think I did a decent job. Now I need to learn how to make fabric flowers to gussy up the shirt.