I've been working on the best method to diagram knitted circuits. So far I've been able to use the PCB view in Fritzing to create this image. Thrilled to see that they added lilypad components to their library for pcb view. Fritzing support suggested I use a pin header symbol as a stand in for the knitted stitches, to use the schematic view, so I may play around more with that, too.
This is the circuit as a traditional schematic.
The circuit can be built on a knitted circuit board made with this pattern.
And if you've got a knitting machine, this file loaded on the machine will knit the pattern.
I'm working on an instructable that goes into the details of this design. Plus I'll be posting it on Hack A Day as part of my entry for the Hack A Day prize.