One of our local guys wrote this up:
So you want to put pegs on the back of your fiddy and you dont want to spend alot of cash, here is how I did it. There are many ways to do this, like buying 50 stunts pegs, but I will show you the way I think is safe and eazy.
First off remove your rear axle and take it to a place that sells bolts and get one the same diameter, but at least one inch longer. My bolt and lock nut were $4.50 from Quick-Set, make sure if your bolt is a different thread you get a lock nut.
Next you will need some sort of BMX bike pegs, if you cant get any local kids to give you a set hit up Walmart or ebay. To get the pegs to work you will need to drill them out so the axle will fit into them. Next you will need to grind a notch so the axle adjusters will clear them.
The area colored blue is all you need to grind so the adjuster will set flat against the peg.
You may want to cut them down so they dont drag the ground in a turn, but they will get ground down after some rideing so just be careful for a while.
To reinstall run your axle through the peg and adjuster making sure you line the notch up with the adjuster, then line up the other side and torque it down.
Here is the finished product that cost me $4.50 and about an hour of time. I left my right side longer because the muffler sticks out and I dont have to put my leg against it. Im a builder not a writer so let me know if anything needs a better discription.
For more information, check out Fiddystunter.com