Seems like if you have enough t-shirts you should be able to keep everyone in undies for a while, strange no one has thought to make undies into t-shirts though, I’m sure my spiderman briefs would make an excellent t-shirt graphic (JK).
So here are the sources of t-shirt recycling ideas:
Send your t-shirts to SoloJones to get made into cute undies

Go and buy the book Generation T 108 ways to transform a T-shirt for a lot of t-shirt re-fashioning ideas, and check out the web site for a new free tutorial every month

(they have a blog too although it doesn’t seem to be getting updated any more)
Check out OhMyStars.com for about 30 different tutorials on refashioning shirts, like this triangle camisole

Supernaturale.com has a bunch of patterns for making your own underwear out of t-shirts and is one of the only sites with any ideas for guys with a pattern for making boxer shorts (pdf)

And of course threadbanger shows you how to reuse t-shirt graphics to dress up other pieces of clothing like dress shirts.
Courtesy of Threadbanger, bang on guys
Anyone have any other ideas? Add them to the comments and I’ll add them to the post. I’ll send out a threadless gift certificate for any really awesome and original ideas.
UPDATE:
Love this T-shirt shopping bag idea, you can make your own or even buy them from Greenteebag.com
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