I was watching one of my favorite movie channels, the "old movie channel" (TCM) and guess what I found? Knitting!
The movie is called Quality Street (just like the candy!) and features Katharine Hepburn as a pretty young thing at the turn of the century who is fixated on getting married. (I guess that's what young women did back then). Anyway, she visits her old spinster aunts, and guess what they're doing?!
I just now looked at the plot synopsis on IMDB, and it seems much more complex than I thought. Hepburn has a crush on a doctor, and assumes he's going to propose. Instead, he enlists in the army and is gone for 10 years (wimp!). Upon his return, he's shocked, shocked! to discover how old she looks (and how old do *you* look, mister?). Anyway, Hepburn spruces herself up for a ball, just to prove him wrong. She transforms herself so completely that he doesn't recognize her! She takes the game up one notch by pretending to be someone else, her own niece in fact. They spend the evening flirting, but in the end, he admits that he cannot marry this beautiful young girl because a) the "niece" is too ... flirty --clearly a deplorable quality in a young woman-- and b) he's in love with the old Hepburn. Happy ending, right? Well, no. The dreaded spinsters, pictured above, are watching Hepburn like a hawk so she can't even tell him that she IS the old Hepburn. Ooh, those evil knitting spinsters!