Yes, the chain stitch is crocheted on at the end. The pattern is from Folk Bags: 30 Knitting Patterns and Tales from Around the World, by Vicki Square, (c)2003, from Interweave Press. The instructions and illustrations are very good - I had never added that sort of embellishment before.
Yesterday I bought a skein of sock yarn that should be enough yardage for the full pair. The colorway is kind of a fall mix of brown, yellow, and a little red - I'll post a photo once I have my camera back. The yarn is really cool because it has aloe and jojoba oils in it, so it conditions your hands as you knit and then softens your feet when you wear the socks.
I feel a little guilty because I have so much yarn already, but I'm almost finished with two projects and I'm not really excited about any of my current sock yarn. Although I do have one brown lace sock that really needs a mate, and spring would be a good time to finish it and then wear them.