I finally got the loom out again today. I ordered the other size heddles for it and am glad to have something other than a 5 dpi now!
The true color is between the top pic and the others. The solid navy yarn is Knit Picks Cotlin and the variegated red/white/blue is 100% cotton from Newton Yarn Co. (the yarn is called Softball Handprint).
The finished piece is about 10 feet long. I plan on sewing hems and cutting it up into handcloths, facecloths, etc. None of this will ever touch a dirty dish! It's very soft and will only get better with use. The design is kind of random, though some was planned and will be better seen when it's cut up.