I absolutely love my pallet re-purposed into a wine rack that hangs on the wall. I can not stand having things on my counter to 'wash' around constantly so this helps out a lot! Click through the pics to see the process and notes!
Cut apart the pallet the second board up (on the backside).
Take one of the 'pallet boards' off the remaining pallet piece and attach to the bottom of the wine rack (nail both sides with 2 nails for support).
Sand the rough edges off the rack. I kept some ridges as I wanted it to look rustic.
I used a torch to increase the look of the wood grain. Again, going for the rustic look so adding the burnt graining will come through after staining more.
Wearing gloves, stain the rack with an old rag. Dip into stain (I used black walnut). Be sure to get all the cracks and crevices inside. After staining, let dry in a 60 degree F minimum area for 24 hours. Coat with a polyurethane. Let dry another 24 hours or longer until completely dry. Add hanging hooks to the back (your preference for the specific weight from you local hardware store).
Completed wine rack with all your favorite wines, NOT on the counter anymore :)
*Note: you can use this for storing other than wine bottles. Vinegars, oils, etc.