oh my god i want one! I guess she didn't want to give TOO detailed of a how-to, if she's planning to try to mass produce them...

This is how you do it:
1. create a stencil (graphic software is a good idea)
2. turn your rug over
3. tape your stencil to the underside of the rug
4. use a sharp utility knife
5. cut
6. turn rug over
7. voila!

My question is this: how do you hold the rug down and keep the loose ends from flipping up or curling? You don't want to tape the rug down because you'll need to sweep those nooks and crannies.

i see those problems too, duane. perhaps a low-pile rug of a single colour could be painted using your steps 1-3 and then just paint. or a cool mutli-coloured rug with the stencil on it, then roll over top of it with a single colour to have the design really pop.

looks like she used FLOR tiles, which are rubber backed. Looks like the Fedora style, which is like a thick felt, so that would eliminate the curled edges and cut pile mess issue.

Or you could use two colors of Flor tiles and cut them out together -- that'd be great for a mirror-image rug.

There's also a spray paint for rugs that I saw on Meg's Great Spaces. I don't remember much about how it worked, but it looked pretty simple.

BEAUTIFUL typography!!! And good questions and suggestions!

I helped a friend install carpet tiles. They were quite stiff - backed by recycled tire rubber, I think. Don't know if they were FLOR but here's their page called "What is FLOR." I couldn't watch the video on my current connection, but maybe they show a side view... http://www.flor.com/what-is-flor/ They adhere to each other rather than to the floor, so maybe that creates a finished piece that holds together when you move it?

One thing that would help with keeping the edges from fraying is to use a very sharp blade. There is also a type of tape made for this kind of thing, which you can ask about at the flooring or rug store.

This looks like a big sheet of industrial felt.