I'm cheating with this post, because I did this ages ago and featured it on my first blog, which I believe is still to gain a single pageview! I had no idea how to get people to look at it so I gave up after two posts. I thought I'd share this on here now, so maybe someone will actually see it!
When I first moved into my flat I had no seating in the living room. Actually, that's a bit of a lie, I had a bean bag, one of the inflatable ladybird cushion things from ikea, and a second-hand footstall which I picked up from Emmaus in Brighton (along with a few other small bits of furniture, and some wool I think!).
I'm a big freecycle fan (most of Kit's cloth nappies and vests came from freecycle and I've re-freecycled them as he grew out of them). When I saw a foam chairbed advertised I jumped at the chance of having some more seating. The ad did point out that it wasn't in the best of states!
I had a length of fabric that I'd picked up for a couple of pounds from a charity shop. It turned out to be practically the perfect size to cover the chair. I did so in a very rough way and the fabric is sewn to the foam rather than being removable.