A few thoughts as I read through this thread:
Please remember that, unless stated otherwise, no one here is a copyright attorney. We can give layman opinions, but if it were me I would definitely consult a copyright attorney before jeopardizing my home or livelihood. (Have you seen the $$ penalty for copyright infringement? Yikes!) I wouldn't rule out someone coming after me either - designers are getting fed up with the attitudes of infringers.
Copyright principles do not distinguish between different intents or monetary gain; the issue is whether the work was copied (medium doesn't matter either) plain and simple. There is, to the best of my knowledge, no personal use doctrine. Magazines, for example, may grant purchasers of the magazine the right to make a project for personal use, but that is their right to grant as the copyright holder.
If I see a project I may want to make, I go ahead and purchase the pattern, magazine, etc. It is just so much simpler - no lingering questions and it doesn't cost very much. It is also a nod to the designer, putting a little money in their pocket so they can continue to wow me with their creativity. Flattery by imitation feeds no one; supporting designers who put their hard work and sweat into creating new patterns for us supports the industry as a whole.
I've seen many discussions like this over the years, and I've come to a personal conclusion: Those that are genuinely interested in learning the rights and wrongs so that they can do the right thing will - those that offer tissue-paper thin excuses for doing the wrong thing will continue to do so.