Crafting the Rugs
There are four different rugs than can be crafted: Brown, Red, Blue and Green.
Rugs can be placed on the world ‘rolled’. By left clicking on a rolled rug, it extends. Left clicking on an extended rug rolls it. Right clicking on a rolled rug picks it up.
Rugs are decorative. They’re placed based on the orientation of the player.
Enchanting the Rugs into Magic Carpets
Any rug can be transformed into a Magic Carpet by combining them with a Bottle of Enchanting, a Blaze Rod or an Enchanted Book: