Knitting Hansen's bandages (Hansen's is the disease formerly known as leprosy) is something AKG has done in the past. The downsides of this particular type of knitting include small needles, threadlike yarn (#10 crochet cotton), and long time commitment.
Yet another reason to go to a guild function is that you might discover something new. In this case, Patti brought her Hansen's bandage loom to Whit's block(ing) party. This is a special loom that produces a double-sided fabric. It is worked in a way similar to French spool knitting. The thread/yarn is wound around the pins, then old stitches are pulled up over new. Patti's loom is stamped with the words "www.dalooms.com". I haven't ordered anything from them, so cannot vouch for them, but provide the link for anyone interested in exploring. Also, quick searches on Google and Ravelry bring me back to this blog. They seem to be the current active distributors of bandages in Vietnam.