It's Claudia's Handpainted Merino... and it's been sitting on my arm rest while I knit, for days. My first thought was socks, but this yarn is soooo gorgeous and sooooo soft that I want to wear it where I can just stare at it.
I'm considering a little pair of fingerless mittens (I could gaze at them while I drive or knit at baseball games) or what about the Element scarf from the Garter Belt? It might be a bit too bright for a scarf... but it could be worth a try. Hmmm... any ideas?