How To Weave On A Peg Loom

I've been looking for a project my DGD and I can do together this summer and I think I have found it. Peg looming. It is an ancient form of weaving and its beauty lies in its sheer simplicity! She can make some scarves for her Christmas presents and maybe she'll want to try working on a rag throw rug while I'm working at my loom. Here's a great tutorial I found, and a quick video of a Peg loom rug... enjoy

It's Here, My Loom

Of course it doesn't look like this right now. It's all in pieces in my diningroom awaiting me to clean and rearrange the craft room and figure out how to set it up in it's new home.
I do have some history on it. It was owned by a Grandmother in Troy, Ill. who bought it used in the 1930's and wove rag rugs on it till she turned 98 years old. Her name was Bertha. I love knowing the history of things.
I found on the internet the manual for this loom and downloaded it for free, so i'll have something to help me figure it out. I also found these old advertisements for my loom.

Hard to believe that in 1921 this loom only cost $39.50 and that was warped to boot!