Picture knitting, also known as Intarsia knitting, knits in as many
colors as you'd like in a single row. It can be done on almost any
flatbed knitting machine, even without a special carriage or Intarsia
setting. Diana Sullivan shows a very simple design knitted in using
the "slip" setting commonly available on knitting machines.
For Diana's books and videos, visit www.dianaknits.com. Diana's blog is
diananatters.blogspot.com, and she has lots of ideas, techniques and
patterns available at the blog.