Cheap (and better) baby sheets

My cousin Juliet posted a message on our family website that I think merits more global exposure.  Topic:  how expensive sheets are for the baby's bed.

"Baby sheets: I took a nice soft adult flat sheet bought on sale at Macy's or something (if you don't care about the color you can get something really luxurious and soft), cut it into more than four baby-sized pieces and finished the edges. Because you need tiny sheets when they're newborns (and not in the cot yet) and then slightly larger sheets when they're in the cot, and then larger sheets when they are a bit older, one large king-sized sheet will do the whole business. Just cut in half (don't rip!! this was my mistake), then in half again, and cut one of the halves in half, and you've got two tinies, and one or two medium, and one or two large (depending on how many cuts). Move aside Martha Stewart! "