In my never-ending quest for something new to do with my looms, I found this fascinating tutorial which shows you how to make crochet-look granny squares using Knifty Knitter Looms.
With just a 12 peg and a 24 (or larger) peg loom and some yarn you are able to crochet. Of course as with regularly crocheted granny squares, the colour combinations are unlimited to make your squares interesting and unique.
Check out the Granny-On-The-Loom Tuturial!

Provo Craft, the creators of the Knifty Knitters, have a terrific page full of useful information. Buy all of their looms, pattern books and other knitting stuff online direct. PDF files for Long, Round and Rectangular looms are free to download, other links offer stitch instructions and free loom patterns to download.