I loved this peg board basket design by nicknawa -- I remixed it to be slightly bigger (3" x 2.5" at the base, 4" tall, and 3" x 3" on the top).

I also moved the hooks to the inside so the basket will sit flush against the pegboard, and put two pegs on the bottom for more support.

Fits 1" pegboard with 1/4" holes.