You might want to look at *two* names so you can market your handmade purses completely separate from the diaper bag business. That would also allow you to later expand your handmade purse business to include, for example, jewelry or other accessories.

In the same vein, your diaper bag business might later expand to include other items that parents of babies need. For that matter, you might even grow with your customers and offer products for toddlers, etc. It's always much easier to sell to established customers than to new ones.

For names...
Posh Purse?
The Pretty Purse?

Then again, you might want something less specific in case you do decide to expand into other things. It can work either way, though.

Something else to think about when brainstorming names...
Who is your market? Are they affluent? What age group? Your business name is a big part of marketing and it should "speak" to those consumers, whoever they are.

Good luck!

Nancy
http://www.CreateYourMarket.com
Marketing Ideas for the Home-Based Entrepreneur