Being a former avid beader, I have tons of beads lying around that have just been screaming at me to be used in conjunction with knitting. I found this pattern for a
Little Beaded Bag, and promptly made this:

It was a very easy fun little project and took no time at all. I used cotton yarn and E beads.
Afterwards, it occured me to that the basic technique could be used for jewelry. So I played around a little bit and came up with this:

In case you're dying to have one of your very own, here's the pattern:
Beaded Knitted Cuff
It's basically beaded stockinette stitch with garter stitch edges to keep it from rolling and give it some extra texture. It fastens with two small snaps.
For this project you'll need some yarn that's fine enough to string beads on, 49 beads with holes large enough for your yarn to fit through, a wide eyed needle (I used a beading needle that opens up to allow the yarn to slide in, but you could probably use some glue to stiffen the end of your yarn into a point (make sure you let it dry, of course), a couple of snaps, and some #2 or #3 knitting needles
To make:
First you must string your beads on the yarn. You have to string them in the order that you'll be knitting them. If you wish to use 2 colors of beads like I did, you would string them on in this order:
4 silver, 1 blue, 7 silver, 1 blue, 7 silver, 1 blue, 7 silver, 1 blue, 7 silver, 1 blue, 7 silver, 1 blue, 4 silver
Push the beads up onto the yarn. You won't need them for a while.
Now cast on 13 stitches.
Rows 1-6
Knit across.
Now follow the charted pattern below until you have 6 bead diamonds completed. The way you work the chart is starting in the lower right corner, from right to left. Remember, each blank square signifies a knit stitch.
After the last diamond is complete, do one row of knit 3, purl 7, knit 3, and then a row of knit across.
Now knit 6 rows in stockinette stitch with no garter stitch selvedges---this makes a flat tab to attach your snaps to that's less bulky than if you continued with the garter stitch on the edges. Bind off, and weave in your ends and then sew on your snaps with some thread that matches the color of your yarn. You're done.

Notes:
*Slipping the beads is easier than it sounds. When you see a snowflake on the chart, just bring your yarn to the front, slip that stitch onto your right needle as if you were going to purl, then slide the bead down the thread and tight up against your work inbetween the previous knitted stich and the stitch you slipped. This makes it so the bead is sort of raised up and shows on the front of your work and not the back. Put your yarn in the back again and proceed. There's always a knit stitch after you add a bead, as it shows on the chart.
*I have little wrists. I'm also a fairly loose knitter. You may want to string on extra beads (following the sequence) in case you do your 6 diamonds and decide you'd like one more before making your end tab.