I wanted to create a sock using the Knifty Knitter and I found a pattern on the internet however making the heel was more difficult than it is in the Knifty Knitter book (for christmas stocking) so I just used the 2 differences as a reference for my own sock.
 

This is just the little sock.  It's sort of like a slipper with it's cuff around the ankle and it's not really snug either so it keeps coming off.  I did the cuff using the instructions I found on the internet but for my next one I'm not going to make it with a cuff but instead I'm going to keep

knitting and then when I'm finished just use the crochet hook to finish it.  This will make it tighter so it stays up.  Although you can use the ribbed stitch, that should make it tighter but I am not sure as I haven't tried that one yet.

Ok so what I did for this sock shown in the picture above is I used the Blue loom which is the smaller in the set, the one with 24 pegs.  Do 10 rows, create a brim as if you are doing a hat, do 5 more rows then start making the heel.

Heel: 
Wrap over to the 12th peg.  Knit off then wrap and knit back to peg 1. 

Start to decrease by taking the year loop from peg 1 and peg 2.  Pull the loop from peg 2 through loop 1 and place back on the same peg.  Knit to the end of the row. 

Take the yarn from peg 11 and 12.  Pull the loop from peg 11 through loop 12 and place back on the same peg.  Knit to the end of the row. 

Continue decreasing until you have 3 empty pegs on each side.

With remaining pegs knit 4 rows (or 3, whichever number gets you back to peg 1).

Start to add stitches.  Every time you knit to the end of a row add a stitch on the next empty peg.  Do this 6 times until the pegs are all filled.

Once the heel is made just continue knitting as if you didn't just go through all that and keep going until you reach a comfortable length.  For my size 10 1/2 foot I did 30 rows.

Gather stitches to remove from loom.  Starting with the first peg run a needle and 12" of yarn through the loop on each peg then lift the loops over and off the pegs.  Pull the thread tight and tie off in a square knot.  Weave in the ends.

If you want to make your socks like regular socks so they are say for example knee socks then don't just knit 5, knit like 40 or something (depending on how your legs are) until they are the length you want, then do the heel.  And I wouldn't make a cuff for long socks, they will never stay up on your leg.  You could also sew some elastic onto the inside of the sock where the cuff should be so they really stay on.

Since these socks are home made socks they have no traction like the slipper socks you buy in the stores so make sure you put some traction on them.  I don't know where you would buy some so I would suggest that if you can't find a place then use a hot glue gun in a design of your choosing on the bottoms (take them off your foot first dummy) and as they are cooling press something against the hot glue so it's flat instead of thick and round, this way they wont hurt your arch when you walk.  We gotta be careful what we do to our feet, this can effect the way you walk so make sure when you make your own traction that you don't put thick beeds of hot glue.  Smash them first to make them thin.