Our guild has an ugly fabric challenge also. We get together in a group of 3-5 or so and the keeper of ugly fabric chooses the fabric for us. We can use any other fabrics we want but we have to use all or most of the ugly fabric in the quilt. We have so many wonderful quilts from the challenge. We make them for our chairity projects. The only ugly fabric has just not been grouped with the right pretty fabrics yet. Some fabric is just hard to picture in a quilt, but when it is an assignment, we buckle down and get to work and magic happens.