It's the simplest method from my "Instant Hammock" article in Make Magazine Issue #9.
I used the program "Avd Video Processor" to make these animated gifs from video.
Now on Know How! Click on the steps above for more details.
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First bunch up the ends and tie knots in them as shown.
If you don't have much cloth, are skilled with rope, or don't care if you fall you can skip this step.
Step 1: Tie a rope to each end with a Lark's Head knot
If you don't fall it means you did it right.