Here's a poncho I made back in January. It's made from Bernat denim style (faded kahki is the color I believe) and knit on size 10.5 needles. I just knit two rectangles and then stitched them together (like most poncho patterns call for), then added the fringe. The fringe helps keep the stockinette stitch from rolling up.
^ that's my dog - too curious to stay out of the picture.