Here are some really cool and easy to make ornaments that will use up some of your scrap yarn. No, I'm not talking about knitting some god-awful starched angel, I'm talking about these swift glass balls full of yarn squigglies
If you have a bunch of different kinds of yarn, you can come up with a variety of ornaments. I really like the ones that use metallics. Have you come up with any scrap ornament projects?