well, you hook the yarn around all four pegs, then you go around again and lift the first round over the peg towards the middle of the knitting nancy, you keep doing this until you have the length you are looking for...it makes things like purse handles, belts, hair accessories and the like...I am sorry I did not put the directions w/the pic but I will add a copy when mailing this to the highest bidder!!! I am also sorry if I am not explaining it very well, it may be hard to understand without seeing what I am talking about..
FYI: I found the instructions to this...it is actually called a french knitter, too!! The highest bidder will get the knitting nancy and the instruction sheet!!!