Hi Selene! To make the square bigger you just keep crocheted on the two sides and you change colors every few rounds. I normally use three colors...the color of the original square that I start with and then two more colors. I do two rounds of each color so when I'm done there are a total of 6 rounds. Hope that helps!
You are not a pain. I am happy to answer any questions. The peg with one loop is always in the same location, though when you go one direction it is on one side of the loom and then when you go the other direction it is one the peg at the end of the loom opposite the other peg. You do not pull the one loop off of the loom or you will be pulling your piece off and it will be uneven.