Basically, at the time of New York Fashion Week, the episode of Project Runway where Kara was eliminated hadn't aired yet. Because of this she had to create and show a collection as well, so that people wouldn't know she was out. I just found a link to it, and well... it's pretty damn good
I think Kara's problem on the show was that, with only one garmet, limited time, and the constant possibility of being eliminated, she played it way, way too safe. She never really kicked it up a notch, because that could end up on either extreme: being the best design or being the worst. You were never really safe, because the judging was really subjective, and Kara was to afraid to really do her thing.
If she keeps designing like that, though, I think she could really go places! ROX on Kara.