Dlynn918 - I knit a pair of longies not too long after starting knitting. I used the Sheepypants pattern and was really happy with it. For a first project in the round I would recommend trying a basic hat, just so you are comfortable with the concept of going around and round, and doing increases/decreases. Otherwise it might be a little overwhelming. I second Cathy, knittinghelp.com is awesome for its videos, I watched those many times!!
I just finally realized what this thread was discussing, duh! Since I've had some issues in this pregnancy it's taken me awhile to feel comfortable enough to start making/buying anything for this baby. But today I started planning a couple of projects with respectively, some leftover yarn and some really nice silk/merino that I have on hand. I want to make some boyish booties and a girly silky cap with those. I have a little Etsy shop so I can go ahead and do both for fun and then put whatever we're not going to use up for sale. Knitting is really my therapy lately and I will really enjoy the process of making some tiny things with some special yarns.