The Major System is often used to create pegs. Check out that page since some of the info overlaps.
Here's what various sites have to say about making pegs from rhymes:
Human Memory (http://memory.uva.nl/memory/memimprovement/eng/rhyme_peg_1.htm)
Memory Improvement and Learning Information (http://www.happychild.org.uk/acc/tpr/mem/0598tnit.htm)
Mind Tools (http://www.demon.co.uk/mindtool/norhyme)
World Wide Brain Club (http://www.silkwood.co.uk/cgi-bin/nav.pl?doc=Number_Rhyme.nav&uid=363703)
Making pegs from shapes:
Human Memory (http://memory.uva.nl/memory/memimprovement/eng/shape_peg.htm)
Memory Improvement and Learning Information (http://www.happychild.org.uk/acc/tpr/mem/1298nosh.htm)
Mind Tools (http://www.demon.co.uk/mindtool/noshape) Palace of the Mind (http://ns.otranto.waseda.ac.jp/memory/memory04.htm)
World Wide Brain Club (http://www.silkwood.co.uk/cgi-bin/nav.pl?doc=Number_Shape.nav&uid=363703)
Back to the main Mnemonic page.
Add some tips, rephrase the info at the links, estimate the difficulty level, add some canned examples, and more links, etc.
The Peg lists usually go all the way from 0 to 100, sometimes with an additional 00 01 02..09 words.
Extend the Peg list
If you need more than 100, you can always associate the peg word with more attributes. For example, tie is 1. Now, a red tie may be 101, a blue tie may be 201. Then, add texture. A slippery, red tie is 1101, a hairy, red tie is 2101, a rubbery blue tie is 3201. Add smells, and sounds and you can remember a million things (literally).
You need to imagine it well, touch it in your mind and feel the fur, the bump, the rubber.
If you want to extend your Peg list later, be sure not to use adjectives for your pegs. You could for example use red for 41, but you'd end up with things like red red or blue red.
To get started, you probably want to make yourself a peg list. Some words only have one translation, some have many.
Similar, but not identical peg lists: