WIP is short hand for Works in Progress, often used by writers. Knitters and Quilters often refer to such things as U.F.Os (Un-Finished Objects).
Ysabeau expressed interest in seeing other stuff I've been working on, so this post is for you, Ysabeau :-} And Yes, I am certain you could make the mystical scarf, all you need to know is how to cast on, knit, purl, and cast off. I highly recommend the site knittinghelp.com for any new or soon to be knitters out there.
The first image is my current 'big/complex' project. I'm knitting "Mrs. Weasley's Bag of Stitch Witchery' from 'Charmed knits' It uses relatively small needles (#5s) and is good to work on until my hands get a little twitchy. Then it's great to switch to a smaller project with larger needles, for Warm Woolies or another charity. The other two images are of a set of mittens (with hat still in progress) and a finished hat I based on the pattern Coronet from knitty.com.