I'm all done now!
The first bag is for my friend Jenn, who is generously helping me out this summer with some much needed babysitting.
The red bag is a second bag for me, just because I wanted two.
The oval handles were considerably easier to work with than the round handles I used for the first bag. So much so that if I decide to make any more of these (and the Princess pointed out that I should make one for another close knitting friend) I will definitely look for oval handles.
Also, I did make one minor modification to the pattern. Instead of using the center of each towel to line them up for the first seams, I used the center of the inside towel - the one that attaches to the handles - and offset the outside towel so that there would be a more generous chunk of material left over when I trimmed the sides. This gives you enough fabric left over to make a matching accessory bag!