The Sanguine Gryphon has a Winter 2011 pattern collection inspired by literature. I've already picked up "As You Wish" and "Taming of the Fox". This morning I noticed that Boing Boing readers were being directed to "Hwaeti", so the collection is seriously turning heads.
There's also fairy tale in the collection with "Jack".
I love that some of the patterns are incorporating words themselves. "As You Wish" features those immortal words from The Princess Bride (incidentally, how great is it to see that brilliant book included along side The Great Gatsby and Emma?). Now I just need more time to knit... and possibly cooler weather.
Incidentally, the Sanguine Gryphon also has an awesome steampunk pattern collection.
Patterns like these remind me why I picked up knitting. Not that I would recommend these patterns for knitting during lectures. For lecture-knitting, you need plain, simple knitting.