Dear of troy: I think knitting is far older than the Egyptians. Remember my post a long time ago, about the Venus of Willemdorf(?sp.), who was at first said to have an elaborate hairdo, until a lady amateur arhaeologist declared that the venus was actually wearing a knitted cap.
Tiny squares hitched together like Afghan my grandomther made. I figure bird fibula knitting needles were to short to make large squares. And the same lady noticed imprint of fabric on the clay from which the Venus was made, over 20,000 years ago. I'll try to find that URL again.
What in hell has the internet come to? Searching for
"Venus of Willemdorf" brings up a Porn site!

http://womenshistory.about.com/gi/dynamic/offsite.htm?site=http%3A%2F%2Fwww.nhm-wien.ac.at%2FNHM%2FPrehist%2FCollection%2FObjekte_PA_01_E.html

I tried making a shorter link, but couldn't copy it, wh;en I tried to it just brought up the site again.