UPDATE.... TA DA!! It can be done - see last picture. That is the whole bag when it came out of the hoop. Just the lining seam left to stitch.<br /><br />

This project has been occupying my mind for a while (when I was finishing my big quilt.) The bag is made in the hoop. Each panel is pieced, joined to its neighbour and lined ITH. (The lining is continuous.) The handles have to be prepared in advance but are added ITH. I hoped I was going to be able to add the base ITH as well, but I was defeated. I had to finish the last two seams on the sewing machine (as well as the last seam of the lining.)