Basic Technique
Producing a single strip on stocking stitch background
Materials: Main yarn sample is 4 ply sable crepe. Fairisle yarns various as stated below.
1) Knit in stocking stitch until you reach row you wish fairisle to begin on, then bring the needles(s) you wish to do the fairisle to position 3 (upper working position). The stocking stitch on the needle will now be behind the latch.
2) Bring the fairisle yarn you want to use on this needle from the floor up between the beds of the machine.
3) Lay fairisle yarn across the open latch and by hand knit in this one stitch. Note: on first row only it is advisable to knot the two ends of the fairisle yarn loosely under the needle. This stops slippery yarns from unravelling, especially ribbon.
4) Push needle by the butt to non-working position (needle will now have one large fairisle stitch on it).
5) Raise front bed and knit 2 rows with the main yarn in carriage the same tension as rest of garment leaving needle(s) with fairisle stitches in non-working position.
6) Lower front bed.
7) Holding the long end of the fairisle yarn, which is hanging between the beds, pull the needle(s) back to working position. Note: it is important that the needle is pulled by the yarn. If you try to push it by the butt, the stitch will fall off. It must be pulled to working position.
8) Holding fairisle yarn, push butt of needle until fairisle stitch is behind latch. (upper working position)
9) Repeat from step three until pattern complete.
The basic swatch (swatch 1) was knitted in 4-ply sable crepe and the fairisle yarns were as follows:
1) 1 strand hand knit mohair 
2) 1 strand hand knit ribbon
3) 2 strands 4 ply glitter
4) 1 strand two-tone glitter
5) 1 strand 4 ply ribbon
6) 2 strands Yeoman chenille
7) 2 strands sable crepe
8) 2 strands Yeoman Gringa
9) 1 strand bulky crepe
10) 1 strand hand knit yarn
11) 2 strands Yeoman Poodle
As the sample shows, you can have any number of colours and textures in one row. The only limitation is one's imagination.
SWATCH 2 
This swatch shows 4 ply knitting ribbon on a background of 4 ply poodle yarn. The purl side of knitting is shown.
SWATCH 3
This swatch is a 3-colour argyle pattern motif, knitted in 4 ply cotton yarns. The pattern could be repeated all the way up the centre or side of the front of a sweater giving a panel of colour. The instructions for this are as follows and are just a variation of the basic technique.
1) Knit to fairisle row.
2) Cut fairisle yarn of three different colours about 3 metres long and fold in half.
3) Knit one fairisle yarn in middle stitch of main yarn using the centre of the fairisle length knitted into the main yarn so that you have 2 ends of equal length of the fairisle yarn hanging down from bed.
4) Push needle by the butt to non-working position. (needle will now have one large fairisle stitch on it.)
5) Leave odd number of needles either side of the needle with the fairisle stitch on it. (11 were left in sample)
6) On the 12th needle, in this case, either side of the needle just used, knit in your second and third colours.
7) Push all needles that have fairisle yarns on them by the butt to non-working position. (You will have 6 ends of fairisle hanging down from bed)
8) Knit 2 rows with the main yarn in carriage the same tension as rest of garment leaving needles with fairisle stitches in non-working position.
9) Holding the long end of the fairisle yarn, which is hanging between the beds, pull the needle(s) back to working position. Note: it is important that the needle is pulled by the yarn. If you try to push it by the butt, the stitch will fall off. It must be pulled to working position.
10) Take one end of fairisle yarn and knit it into adjacent stitch to stitch just formed. Do the same with the other end of fairisle yarn. This is the start of the "V" formation. Do this at each of the positions you have fairisle stitches on.
11) Put the six needles that now have fairisle yarns on them into non-working position.
12) Knit two rows.
13) Repeat from step 10 until you have formed the width required for your argyle pattern.
14) Repeat from step 10, but this time bring stitches back one needle each row until the pattern is complete.
There are many patterns that can be formed this way: diamonds, V patterns, zigzag, diagonals, etc. Once the technique is mastered, the effects that you can produce are only limited to your imagination. So gather up all your oddments of hand knitting yarn from your attics, friends, or bargain bins in your local yarn stores and create your own unique garment.
Happy knitting.
Mike and Eileen, UK