I usually watch movies or TV when I knit. The TV's almost always on History Channel, so it's not like Jersey Shore is on all the time. Sometimes I listen to music, but usually I'll listen to some of my records since they aren't portable. But I just got glasses today for distance, and I was trying to knit earlier, and had my glasses on to see the TV, but can't focus close up so I had to ditch the glasses and move to the floor so I could be closer to the TV. I might be sticking more to watching movies on my computer or listening to music now.
I've tried to listen to audiobooks as well, but those are a snooze-fest. You can't beat a book.