You definitely don't need a sewing machine to make almost anything, but it is faster. As mentioned, check out Craigslist, freecycle.org, sewing machine repair shops, etc., or just buy an inexpensive machine ($70-100 or so) if you want to use a machine.
If you want to sew by hand, I'd suggest checking out some of the boards and sub-boards at Craftster.org.
The ones involving clothing often have projects done by hand (and some of the other boards too). Most of the members are teens or young women some of whom also don't have sewing machines.
All the *main* craft forums at Craftster are listed down on the right on this page:
http://www.craftster.org/forum/index.php
Click especially on the ones called:
...Clothing (especially perhaps "Reconstructed Clothing")
...Sewing in General
...Toys, Plaything, Plushies, Dolls
...Home Sweet Home
(If you also join Craftster--free--you can ask questions, etc.)