Here are written and step by step video instruction on how to loom knit the raised paving stitch in 2 colors. There are 2 versions of the stitch. The cells are narrower on the first and wider on the second.

This stitch can be knit on any gauge loom with any weight yarn.

This stitch can also be done in one solid color as well.

When working with 2 colors, the unused yarn is carried and not cut until used again.

Written instruction and videos demonstrate how to work the stitch in a flat panel, but it can also be use in the round as well by leaving off the border stitches.

Links for the step by step video tutorial follows the written instruction.

This stitch is used for the Paving Rainbows hat that can be found here: http://www.ravelry.com/patterns/library/paving-rainbows-hat