49 Brilliant Garage Organization Tips, Ideas and DIY Projects - Page 31 of 49 - DIY & Crafts. This looks like Bouillon Cube jar lids screwed to the board, so jar part can screw onto the lid. I've also seen done with baby food jars.
When hanging pegboard, you want to make sure that the board is sitting or so away from your wall so that the hooks, pegs, etc. can fit behind the board without damaging your wall. To do so, put 7 washers on our screws to keep the board from the wall.