1) Cut the t-shirt into a very long 1/2" strip of material
2) Tug on the strip so that the material curls onto itself creating a tube. I pass the yarn thru this second process twice to make sure I get the maximum length out of the yarn.
I did decide that the solid colors don't suit my style so I decide to use bleach and make a tie-dye yarn with all the colors. Now I just need more T-Shirts and to decide what I will knit up with all this fabulous yarn.