Crochet Cast On
Step 1: Make a slip knot and put it on the first peg. Insert the crochet hook (size H, I, J or thereabouts) into the slip knot.
Step 2: Hook the working yarn around the crochet hook.
Step 3: Pull the working yarn through the loop that's on the first peg. You now have a new loop on the crochet hook.
Step 4: Put that new loop onto the next peg. Since I am right handed, it is easier for me to crochet from right to left, or in a clockwise direction around the loom. Keep the crochet hook in the loop. Wrap the working yarn around the crochet hook again.
Step 5: Pull the working yarn through the loop that's on the peg.
Step 6: Place that new loop on the next peg. Continue with steps 4 - 6 until you have a loop on as many pegs as you need.
Here's what the loom looks like with the crochet cast on. If you will be knitting in the round, the last loop will go on the first peg, so there are two loops on that peg. Knit off, bringing the bottom loop over the top loop and off the peg. This will close the circle. When you start to knit your first row, start with peg 1 that you just knit off.
Here is what the cast on edge looks like, with a few rows of knitting completed. Not loopy like the e-wrap cast on, eh?