I finally finished knitting the preemie blankets using the wool kindly sent to me by Jo of the Three Stories High blog. The yarn is Water Wheel Comfy 4ply and Jo confirmed after my last blog post that it is indeed vintage yarn and used to belong to an 83 year old lady. It must have been stored very well because it was in pristine condition. I'm glad I was able to turn it into something useful.
Jo suggested that I should knit some preemie items with this yarn. I was originally going to call these the "Little and Large" blankets. I knitted the smaller one first and then cast on about an extra 18 stitches to knit the larger one. This wool is so fine that it is really difficult to tell them apart. The larger blanket is actually the one underneath. It is wider and longer; but not in an obvious way.
These blankets used up 160g of yarn. I still have 40g left and could knit some preemie hats or a cardigan. The charity I am planning to send these to (PreemiesUK) likes matching items. I am trying to finish something else at the moment and then I will be able to think more clearly.