I do pretty well with refilling the black cartridges, but the colors don't work so well. Also, some of the later printers apparently need a little pressure/vacuum to work right, and sometimes the colors end up being a mess.
We recycle the grocery bags, along with a lot of other stuff, but my favorite reuse is the peanut butter jars used as nut/bolt/small item holders. I probably have 30 in use out in the shop now, and 10 more in waiting.
You can see into the jars (labels are removed) as you walk up to them; the lids keep stuff in and out; and the bigger ones work well as "job jars!"