This 16-page full-color booklet has step-by-step instructions for making rag rugs. It was written by Connie Tesene and Mary Etherington, and includes directions for making the rug "frame" (loom) you'll need.
Pick fabric that has color saturation on both sides (solids, homespuns, batiks) or simply accept the natural light and dark variations of the "right" and "wrong" side of the fabric as part of the charm of these rugs.
You'll learn how to cut fabric strips, warp the loom, twist the strips around the warp and add new strips as you go.
I've made several rugs, including the one above. Click the picture to enlarge the image.