Here is what I did with the blue loom. I ended up with a baby hat made out of pink Red Heart Baby Clouds.
My next attempt was with a skein of wool I had purchased with the intention of felting. I doubled it and used the blue loom again. I crocheted a bottom and attached it to the the knitted tube. I crocheted around the top and added the loop. The red flower was made with some other wool I bught to make a purse. It reminds me of an eyeglass holder that someone gave me with a key ring on it. I am not sure how I am going to use this, but I am very happy with the results.
This is a hat I made with the Knifty Knitter. I got the pattern from The Loom Knitting Designs site.