I was browsing scarf patterns on the Provo craft website today. I found many that I wanted to try (like this one), but for the most part, their instructions are extremely vague. The one that I wanted to make explained the stitch to be knitted like this: "Start wrapping the yarn around loom pegs in a figure-eight pattern as shown in the instructions that come with the loom." My loom set came with no instructions! However, I believe the stitch they are referring to looks like this when wrapping the loom. I surfed around and found it on the Provo Craft site as well:
When you circle back to wrap the loom the second time, just go around the last peg once, like this:
To make the figure 8 stitch wrap across the width of the loom making a figure 8 as you go. When you get to the end, simply trace the yarn pattern back exactly as you made it the first time. You know have two loops on the loom, knit off bringing the bottom loop over the top loop with the Knifty Knitter hook. You now have one loop on each peg of the loom. Wrap the loom once using the figure 8 stitch pattern. Knit off again. Continue wrapping once and knitting off until your scarf is the desired length.
When finished, it looks a lot like the one over one stitch, except it is looser and it ends up being a flat panel rather than a circular tube knit.
The figure 8 is in the photo below. I used wrapped and knitted off 15 or so rows, so that you could see what it looks like with one strand of Red Heart Super Saver acrylic yarn.
That would make a perfect light weight scarf for spring. If I were going to make a winter scarf with the figure 8 stitch, I would use 2 strands of yarn as one to make the finished knit more dense. If I were going to use a natural fiber, like cotton that doesn't have the loftiness, I would use 3 strands of yarn at once.
The figure 8 stitch (or any stitch knitted across the width of the loom such as the ribbed or honeycomb) actually does work well for scarves because it looks the same on both sides and does NOT roll like a knit stitch does. The problem with knit stitches (ewrap or no wrap) is that they roll on the edges when knitting a flat panel.
Honeycomb knit is a beautiful and stretchy knit that is ideal in blankets and scarves. It is created by alternating the direction of the double ribbed stitch to make a "honeycomb" pattern.
When knitting a flat panel with the Knifty Knitter loom, you stop and reverse direction at each end of the loom. This is indicated by the red arrows in the photo. Each time you reach the red arrow, you stop and knit back across the loom from the direction in which you just came. The result is a flat panel with a single layer of knit.
I placed a photo of circular knit here, to show you another possible method of knitting on the long looms. To knit a tube, or circular knit, you go continuously around the loom in the same direction, never reversing. You spiral until the knit reaches the desired length.
Because the finished knit is determined by the method of knitting, not the shape of the loom, it is possible to knit a flat panel on a round loom. Knit around the loom until you reach the stop point. Then reverse direction and knit back across to the other stop point, instead of spiraling around in the same direction. Do this repeatedly stopping and reverse directions at the stop points. This creates a flat panel knit on the round loom.
There is one more method of knitting a flat panel on the Knifty Knitter looms. It can be done only on the long looms. It creates a flat panel of knit with a double thickness, such as a heavy blanket, or a scarf. It is created by wrapping the loom up and down using both top and bottom, then knitting off in a back and forth motion across the loom. The 
