I was always wondering what people were talking about on their blogs, when I saw the word "dishcloth". So I decided to find out, and look: I managed to make four of them in a few days! The green one is my favourite to use.
You can find free patterns here, here and here.
To make the little picot border (as you can see on the blue and pink dishcloth), you do the following:
1. Chain 3
2.Sc. (single crochet)in the 3d chain from hook.
3. Skip next chain, sl. st. (slip stitch) in next chain to attach picot.
I've seen other ways to make a picot, you can always experiment a bit and then see what gives the nicest effect.