I went to see The Golden Compass this weekend. It has some of the best knitwear I have seen in a movie for a long time. I am so smitten with the costumes Lyra wore. If for no other reason, I recommend that movie to anyone who likes to knit. It was also a good film, but the knitting was what entranced me.
My particular favourites included a red garter stitch sweater coat near the middle, a very cute knitted hat in the shape of a hood, and a pair of mittens worked in a loop stitch.
I was thinking that a hood in that shape attached to a scarf would be wonderful, and the mittens look so warm, of course you couldn't do anything while you were wearing them, which makes the string holding them through the sleeves handy. I suppose children who are running for their lives don't need to worry about hurting themselves on playground equipment.
You can see some pictures here.
The other movies that immediately come to mind as having really great knitting are Le Divorce, worn by Kate Hudson's and Naomi Watts' characters, and all the Harry Potter movies, mainly worn by Mrs. Weasley, though they do strictly speaking include crochet if I remember correctly.