Jerry had a good idea about using the stuff sack as a model for a simple rucksack.
I would use two seams spaced the width of the back panel apart. This would allow a piece of webbing to be sewn into the seams at the point of the shoulder strap attachments.
Cut out the material for the back panel. Sew the shoulder straps to the back panel. Stitch the webbing across the shoulder strap attachment points to add strength. A bar tack through the webbing and the ends of the shoulder straps where they attach to the pack will add durability.
At this point you will need to determine where the shoulder strap adjustment webbing will be located. Cut out a square of material and cut it in half diagonally. Roll a hem on the longest side. Fold it in half over the end of your webbing and sew through the hemmed edges and the webbing. They can be tacked into place at this time. These are what someone else referred to as batwings earlier in this thread.
Sew the two long seams to the rest of the material that would form the "stuff sack" model that Jerry described. You can then do as Jerry suggested and close up the bottom of the rucksack "stuff sack".
These two long seams can be sewn as flat felled seams by simply using twice the seam allowance on one of the pieces of material being sewn together. After the first seam is sewn fold the extra material over the smaller seam allowance and then fold all of the seam "allowances" over flat hiding the raw edges and stitch them down along their edge. You should see no raw edges when done.
The top closure of the rucksack can then be done with the drawstring method or a roll down dry bag type closure. Either method will work but the roll down dry bag type closure is more waterproof.
The dry bag closure needs only some grosgrain webbing and one side release plastic buckle. Roll hem the top of the rucksack and then sew the grosgrain webbing along the top edge of the hem. Keep it even with the edge. Make the webbing longer than it needs to be because each half of the side release plastic buckle needs to be threaded into place on the webbing in the middle of each of the "side panels" of the rucksack.
NOTE: If you use this method you are not going to be able to sew the webbing continuously around the top of the rucksack as the pieces of the buckle will be in the way. You'll have to sew what amounts to four seams to attach the webbing. Bartacks on both sides of the buckle pieces will add some durability here.
Closure is done by pulling the top shut while holding the buckle pieces in each hand. Roll down the grosgrain webbing and buckle "assembly" at least three times and then bring the pieces of the buckle to the center and snap them together.
If done correctly it will look something like this picture.

It's a little more effort and a little more complicated but this type of closure and a pack liner will keep all your gear dry as a chip if you get caught in a rainstorm.
Post back with any questions and I'll try to answer them as best I can. If you're able, PM me and we can get each other's email address to make the process quicker and easier. ;-)
Party On,
Newton ;-)