Try this link for an illustration of the knot:
http://www.mistral.co.uk/42brghtn/knots/42ktfish.html
For the necklace, you basically do the same thing, except you don't cinch the two ends together as the illustration shows (you leave a loop in the middle to go over the mouthpiece). The loop should be about 1.5 inches in diameter.
Also -- regarding the knots...I basically tie a square knot for both vs. the simple knots shown in the illustration. The knots shown in the picture from my last post are slightly different, but square knots work fine.
Here is a detailed description -- this is long and VERY detailed -- I've made 2 of these now and it is really VERY easy despite the length of my description (and I'm no boy scout):
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(1) Cut a length of bungee -- include the circumference size of the necklace + 6-8 inches to ensure you have enough extra to tie the knots.
(2) Lay the bungee on a flat surface and form it into a circle with the ends overlapping as they will when the knots are finished (with the ends making a smaller circle that will go around the reg mouthpiece. Make sure you have enough extra bungee overlapped to be able to tie the two knots.
(2) Tie the first knot. It doesn't really matter which one you tie first. Don't tighten too much at first in case you have to adjust later.
(3) Tie the second knot. Again dont tie things too tight yet just tight enough to hold everything together.
(4) Check to see if the necklace is the right size. Put it around your neck (ideally with reg attached to your tank/BC) does the mouthpiece seem to lay in a comfortable position under your chin? How does it feel when you have it in your mouth? If its not right re-adjust by untying the knot from Step 3.
(5) One you have it the way you want it, pull the knots tight. Trim the extra bungee off fairly close to the knots. I used a match to melt the cut-off ends of the bungee as well. I do this with cave line and figured it would not hurt to try and prevent unraveling. If nothing else, burning the ends gets rid of some of the little bungee strands that occur when you cut the bungee. Run it under some cold water before mounting on your reg.
(6) Pop it over the mouthpiece on your back-up. Push it as far up against the second stage as you can. I find that by getting it over the zip tie "connector" that is holding the mouthpiece on, the bungee is held securely. Check link below for a close-up of how this looks.
Here are some more pictures of the loop described above -- click on the photos for a larger image.
http://www.northeastdir.com/gearpage1.htm
Good luck.