Bob TBO has instructions for making rags in the fishing tips section of PP. The only thing I do different when threading the yarn through is that I double it over - that way you get twice the yarn in each hole

Rags aren't supposed to spin, just float high, wiggle a lot, and look real meaty - great for the nasty water we've had all year. They don't work if pushed down on the hook because when you set it the rag rips apart - use a star bead like Bob suggests.

Grey backer rod works just fine - I goop my rags up with smelly jelly or bait butter anyway so the color of the foam never shows. I also sometimes use poster paint - comes in all kinds of loud colors, even luminous. This helps out in selective fishing areas where I can't stink them up.

Rags are great - they are cheap and encourage you to cast them into the snags - after all if you're not losing gear you're not catching fish, right? Did that today on the Nooch and actually hooked a fish - he didn't leave the snag, though. Good things rags are cheap, wish my hooks were