I'm not really sure what she's using or how she's doing it, but I'm going to find out and spend every spare moment making rugs like this. Clearly, its something like crocheting (or maybe it is crocheting on a larger scale). If anyone knows how to do this or what to use please let me know so I can fulfil my dreams of making this awesome rug.
P.S. Don't forget about our giveaway!