This mod adds decorative banners in all colours of wool, plus all possible combinations of these colours as checkered banners. To make the banners, put a block of wool in each slot on the left of the loom. Press the "Weave" button to weave the wool into a banner. To toggle the modes of the loom in between weaving point and square banners, punch it.
Crafting is as follows:
Loom:
w = any colour of wool
p = any kind of planks
i = steel ingot
+----------+
| w | i | w |
| p | w | p |
| p | | p |
+----------+
Banner Hanger:
i = steel ingot
s = stick
+----------+
| | i | |
| s | s | s |
| | | |
+----------+