I just spotted this new tutorial on making flowers with ribbon on the Knifty Knitter Flower Loom:

http://radlinccrafts.blogspot.com/2009/08/cute-ribbon-flowers-made-with-flower.html

Here's another neat idea–embelish your cool crocheted purse with a flower:

http://yarnovermama.blogspot.com/2009/08/crochet-purse-with-knitting-loom-flower.html