I have never made a rag quilt but I think that it is going to be my next project. I've been looking at directions here on the net. If you do a search in this forum on rag quilts it will direct you to several threads that have talked about them. Also there are a lot of sites on the WWW that give directions here are a couple.
http://quilting.about.com/od/quiltpa.../rag_quilt.htm
http://www.freequiltideas.com/free_q...lt_Pattern.htm
I hope this helps. Let us know how it turns out and please post pics.