Here's a website that shows how to cut a shirt apart for quilting:
http://how-to-quilt.com/articles/102...for-fabric.php
and here's another website that shows how to turn 7 shirts into a quilt:
http://thethriftyquilter.blogspot.co...e-thrifty.html
You could also use the shirts to make teddy bear applique blocks for a quilt, using a muslin background and other fabric for sashing.