I've seen two different ways to tie Palomar knots:

(1) http://www.animatedknots.com/palomar/index.php and

(2) http://www.sea-fishing.org/fishing-palomar-knot.html

The difference is that in (1), the loop that is passed over the hook is tightened around the hook shank, whereas in (2) the loop is passed over the entire hook and tightened around the line.

Which way is correct? Does it make a difference?

I have never tied it with the loop staying on the shank of the hook. I dont want my line anywhere near the split in the eye of the hook. Seems to me that there would be edges that would damage the line.

Let the line tighten down on itself, just make sure you lubricate it well.

#2. I didnt know there were two ways to tie it. I agree with fish killer. If the line slips up into the eye of the hook it could spell disaster.

I have accidentally tied the 1st knot before and cut my line and started over. I sometimes have to bring the loop up before pulling snug or it will get caught on the eye of the hook. Maybe one works better than the other for different applications, but I have always tied the 2nd one.

I agree, never knew there was two...

Use number 2, you will have less problems with it.

yeah maybe Flour wouldn't cut itself if you tied it like #2

fluorocarbon I should say

Umm i believe they are still the exact same method except the loop is not brought completly over the eye of the hook ill have to go with #2 is the correct way. I have been tieing this knot for 20 years and never changed.

I heard that number 1 was stronger than 2. I did a knot pull test with #1 at one end of the line and #2 at the other end of a short section of line. Then attached the loops to a fixed object and pull the middle until the line breaks. Number 2 broke 2 out of 5 pulls and number 1 broke 3 out of the 5 pulls. End of test and so it doesn't make much difference. I agree though #2 method is safer by keeping the loop away from the hook eye.

Right, but that's the whole point.

Palomar knot has 80-85% knot strength of line.
80% of 10# test is 8#.
Use the Uni Knot. 100% knot strenght.

it looks to me like their big rope they were using just wouldnt go where it should really be lol. I cant imagine tying it with the line on the shank of the hook like that in actual use.