If the yarn is the same as this -
http://www.carodanfarm.com/shopsite_...oduct7038.html, then it uses size 2 knitting needles (which is really small for learning).
Quick search on ravelry turns this up (for Regia Kaffe Fassett Design Line Sock Yarn) -
http://www.ravelry.com/yarns/library...less=0&search=
**ideas: scarf, phone cover, phone cozy, shawl and (of course) socks.