The pattern is "Draw String Bag" by Meg Swansen and it's from the September 2005 issue of Vogue Knitting. I've been making this pattern since it was first printed. The article was more about a Turkish Cast-on technique (with pictures) that creates a seamless, two-sided fabric. I added the pattern page to Ravelry and literally half of the projects are by me. I love the pattern and it's perfect for using up leftover yarn.
This bag is larger than most I've made in the past- about 6 in x 6 in. It is 80 stitches around. For the string cords, I usually cut a long length of yarn (twice the length I want it to be) and put one end under a table leg to hold it down. Then, holding the other end, I roll it (across my pant leg or across the seat/back of a couch) in the same direction as the twist. When it's reeeeeealy taut, I put my finger at the midway point and then bring the ends together. The yarn wraps around itself and I just run my hand down the length of the cord a couple times to smooth it out. Then I knot the loose end. If I'm making two cords (for the drawstring bags) I count the number of rolls that I did for the first cord and do the same for the second.