The blue-lined bag is finally complete! There were a number of experimental elements to it as I had never worked that large of a needlepoint before, had never worked bargello stitch before, was making up the motif as I went along (of course, that parts pretty standard for my work) and was trying to work the canvas in as few of pieces as possible.
I then made the handles from a 4-part braid of the yarns and t shirt material. Unlike the handles of the red bag that were made entirely of fabric and could be sewn to secure the ends, I realized that the yarn compressed too much for that to work well. I ended up using the techniques I had seen on YouTube for finishing the ends of cord necklaces and bracelets by wrapping them in silk thread. By wrapping the ends in sewing thread I was able to strongly secure them and then sew through the wrapping to attach the handles to the bag.
Lining the bag was pretty straight forward. Until I was a little over half done and realized that I had placed the lining in backwards and the seam for the bottom was exposed. If there had been side seams I would never have had that problem,but, because the t shirt was knitted as an integral tube, the only seam was at the bottom and not visible due to the depth of the bag. It was a good thing I put my hand into the bag for some reason or I wouldn't have known until I was finished. I guess the practice paid off at least because it took me about as long to do the entire lining the second time as it had to do half the first time.