Alright, let me go ahead and try this as best I can.
1. Skin the coyote or whatever furbearer you have, standard case skinning. I suppose blanket for a rug(like how'd you skin a badger or beaver) would work just the same.But for sake's sake, let just stick with case.
2. Turn it inside out....leather side out and locate holes.
3. Once holes are located, trim up the holes as a uniform shape is way easier to fix . Get rid of any ragged edges. It would behoove you to keep a roll of paper towels for the next step...
4. Using your paper towels ,clean up the area around the wound/s as best possible and get the area as dry as possible. No hair, fat , blood ....no nothing.
5.Now lightly pinch the wound together so that the wound is leather to leather forming a VERY shallow channel. This is kind of important so that when you get home and go to fleshing, the fleshing knife won't catch and tear the hide.
6. Apply a line of http://shop.hobbylobby.com/store/item.aspx?ItemId=174916 from the start of the channel to the back. I use the Medium cause that's generally what I have on hand ,but colder climates may wanna use the THIN. Give it about five minutes or so and you should be good to go.
And that's it fellas.