Bring on the color!
I am trying my hand at knitting the gorgeous "December Lights Tam" from Interweave Knits Holiday 2007 Gifts magazine. This is my first attempt at using multiple colors, and so far it's not difficult at all. Of course, I haven't gotten past the sideband yet, but I've already used 5 colors out of 8, so I feel that it's do-able. I am using sock-weight wool by Grignasco, Reynolds Soft Sea Wool, Wash Day Wool by Reynolds Kids, and Jo Sharp Alpaca. One of the biggest challenges was finding all the colors I wanted to use in the same weight.
A huge help for me in improving my knitting has been Debbie Stoller's Stitch and Bitch. If you haven't checked it out, or have been put off by the title, you need to take a look at it. Her instructions and tips make knitting seem so much easier than it looks, and she puts a fun twist on a traditional domestic art.