I also use one like in AkDan's link. And to answer your question, with a jig like that, the pin at position marked with a "C" is moveable and is numbered according to bow length, kind of like your drawing above only with one peg instead of two. So if you need a string for a 62 inch bow, you move that peg to the hole marked 62" then start wrapping you string.
That's the whole purpose of the jig really, is to have ONE compact and consistent device to measure out strings for any size bow. It also adds in "tapering" so that all strands are a slightly different length, that way you don't have a sudden change in final string diameter when you reach the end of a bundle while twisting it up.
As AkDan mentioned, I strongly recommend you getting the DVD "Doin the Twist" it walks you through everything and even includes details on how to make a jig.