I've been wearing the same pair of converse for years now, theyve finally given up the ghost though. Instead of chucking them away, I've made them awesome :)

Step 1: Acquire the Bits

For this, you need:

Old shoes
Fabric that you want to use (I recommend checking Fat Quarter for some cool stuff)
Sewing machine
Scissors/knife
Rubber cement
odd bits n bobs

Step 2: Cut the Old Fabric Off the Shoes

Take a craft knife and cut the old fabric off the soles, making sure not to wreck it too much. Try and get it off in once piece as we need to to make a pattern

Step 3: Make the Pattern

Take the main shoe part that you cut off and cut it in half down the back of the shoe.
Place all of the bits on paper and draw round them

Step 4: Cutting

Cut out the paper pattern you just made. Fold the fabric so that its doubled up and pin the paper templates to it.

Step 5: Cut Out the Fabric

Cut round the pattern making sure to leave some space around the edge. We'll be sewing this inside-out later on

Step 6: Get Ready to Sew

Take the panels and turn them over, so that they are inside-out. Sew round the edge to fasten them together.
Turn them inside out and Iron them flat

I didnt take photos of this next bit as I was too busy sewing, but :
Sew the standard converse pattern on the panel, then sew it together with a strip down the back.

Step 7: Punch the Holes for Laces

Grab a hole punch and create 8 4mm wide holes in the fabric, do this again on the other side.

Step 8: The Glue-ing

Now to glue the fabric to the sole. I used rubber cement as its waterproof and flexible
Smear loads of glue around the inside edges of the sole and inside the toe-cap. Stick the tongue in and jam some paper in there to apply pressure to it.

Stick the fabric into the sole after letting the glue become tacky (about 5 minutes), pack it out with tissue to force the fabric into the glue.

Insert the insole and apply more glue round the edges to fix the fabric to the insole