I actually used MCSkinEdit to make it. And I've flipped it in almost every direction...tested it out each time, and it still didn't look right. Though, I may just have to get over.
Well, I've known about it for a while, and it was't until some time during 1.4 that I actually got a hold of it...and the closest thing I had to it was a demo version of the Pocket Edition. But, I eventually got a new computer and was able to buy it that way...
How I found it? Well, Deviantart happens to have a rather large following in Minecraft and one of my friends was making skins for it...
Well, like I said, if you spawned near water and are brave enough to go underwater frequently, then clay can be useful. But like I said, you're more likely to find sheep before you find clay. Though, for me, it's usually the other way around.