Hey Patindaytona, the others explained why cutting the loop is not the best solution, to the small eye issue. The loop is best kept whole. If you have problems getting the doubled line through the eye of a small hook, try this approach. As I am looping around the pegs, I slide my hook on then, when the line is still single piece, then lay the hook around the top/ furthest peg. Tie the rig as normal and then feed the hook through when you feed the loop through, and bingo. The only disadvantage is that it does not allow you to change hooks, or beads and such.
Also, you can vary the length of the loop, this will allow you to get the loop to stand off the rig at a 90 degree angle. There are probably other ways to modify this rig as well. I like the loop knot when making my bluefish rigs. I tie the loop, then I push the end of the loop through a swivel, that has my steel leader attached. Lower down the rig I attach my impact shield, and the whole deal clips down nicely. Add a colorful bobber and you should land some bluefish, although they will be small down in Daytona, they taste great smoked and made into a dip.
Also, changing the distances between the pegs will change the sizes of the loops. Also, when tightening your rig, I will adjust my loop to size, then wet it real well with spit, then I pull QUICKLY, with a jerk, and that seems to help form a good looking knot, one that is equally tight, above and below the loop.
I find the connection to be very strong, but have fished it for pompano and whiting with only limited sucess. The action of the hook in the current MIGHT be a reason for that. The loop knot, made with heavy line, makes a nice rig for drum, using two 5/0, or 7/0 circle hooks. Make a double dropper with about 3" loops, and bait with fish fillets.
All of this of course is just suggestive, there is no better way to learn these things than by experimentation. Some of my rigs have taken me six months of trial and error to fiqure out. Experiment, never be satisfied with how it has always been done. Good luck.