This is how I wrap my sling cords to stop them tying themselves in knots in my pocket.

My sling :)

http://farm4.static.flickr.com/3434/3187800733_f83216fdab_o_d.jpg

Fold it in half

http://farm4.static.flickr.com/3106/3187800887_b4c7715887_o_d.jpg

Holding the pouch in one hand and the ends in the other, use your index fingers to pull the cords into an S shape right next to the pouch

http://farm4.static.flickr.com/3511/3188643090_6775abcf15_o_d.jpg

Then start wrapping, leaving enough of a loop free on the right to get your finger through later

http://farm4.static.flickr.com/3422/3187801151_18c0d0720e_o_d.jpg

The first wrap is important, it holds everything together so make it nice and tight

http://farm4.static.flickr.com/3118/3188643458_168f357ae5_o_d.jpg

Wrap towards the pouch laying the turns side by side

http://farm4.static.flickr.com/3328/3187801457_4c7d226c53_o_d.jpg

Once you have used about a third or more of the free cord, wrap back the other way making a second layer

http://farm4.static.flickr.com/3483/3188643764_172f1148bd_o_d.jpg

Once you have got back to where you started, push a bight of the remaining cord through the loop you left unwrapped at the end

http://farm4.static.flickr.com/3320/3187801795_474d019978_o_d.jpg

Now take the pouch and pull, this traps the bight and holds it securely

http://farm4.static.flickr.com/3315/3187802255_c3624bd972_b_d.jpg

Releasing the sling is like pulling the pin out of a grenade, just take the free ends and pull them out and the whole thing unravels

http://farm4.static.flickr.com/3408/3187802795_eb244f257f_o_d.jpg

[EDIT]

Added this link since the flickr urls no longer work... http://www.flickr.com/photos/23628261@N07/sets/72157612398145123/

That's pretty slick! I usually just wrap the cord around the pouch and it's just a big mess. Elegant solution!

The morningstar wrap :) is now my standard method of tying the strings of my long slings, like the left sling on the picture.
But my standard slings has to short strings for this, and my way to wrap them is illustrated here.  Just double the strings, wrap around, and finish as described by David Morningstar.
The last picture is a sling with the wrapped strings inside the pouch, ready to stuff in a pocket.
timann

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Aha! No more tangled slings for me!
Also, timann, what kind of leather is that that you use in the picture? Is it durable?

Hi, Et Cetera.  This leather is the perfect kind for sling pouches.  Thickness, stiffness, durability is superior.  But it is old and has started to crack, so I use some leather wax and stuff on the pouches when I make them.  
I must have aquired it somewhere years, maybe decades ago.  I do not know where, it might even have been a bit of an old leather bag.
I got no way to get more, and what is left will maybe be enough for one or two pouches :( .
timann

And by the way, I consider wrapping up my leather-and-cord-slings this way a MUST.
I rather dislike pulling a tangled sling out of my pocket :D.
timann

The leather of the sling in my pics is from an old pair of motorcycle trousers. Tough but still with plenty of flexibility.

OK, I'll have to look at garage sales for old leather products. I had bought some thick scrap leather but it didn't work.

thats pretty cool, works with braided slings to

Wonderful, thank you.  No more messes of tangled slings at the bottom of the "Kali bag."  This will work for all but cords made of materials with memory, like sisal.  That's no problem because I recently gave away my last 100% sisal sling.  Sisal = suck.  Nearly all of my cords are either cotton or braided jute.  This site would be a poorer place without David's input!

I put this in Aussie's FAQ and Tutorials section under Topics of General Interest.

about the leather, i used leather drom an old golf bag for one of my slings. it is old, but very flexible! i made a cupped pouch, so there is no risk of premature departure of the stone no more "chhhhhh" whoops!