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Small Knot

The small knot is the simplest method of tying a man's necktie. It is also known as the Oriental and the simple knot, though some claim the simple knot is an alternate name for the four-in-hand knot. The small knot is asymmetrical with a wider base than the four-in-hand knot. It is not very well-known despite its simplicity. One of the reasons may be the fact that the it is not self-releasing, and may annoy people who pull at the tie to untangle the knot.

How to Tie a Small Knot:

Place the tie around the collar the wrong way visible (i.e. the seams and label visible). The relative length of the narrow and wide ends can be adjusted with practice so that the tie is the desired length. A good starting guide is to have the wide end 30 cm or 12 inches lower than the narrow end.
Place the narrow end of the tie across the front of the wide end about 12 cm or 5 inches from the collar.
Wrap the wide end across the narrow end so it is now the right way on the outside of the knot.
Put the wide end through the back of the large loop (which is around the neck).
Push through the same (wide) end through the smaller loop (around the tie) and pull it through carefully. Pull it until it forms a knot with a pleasing shape.
Pull the thin end carefully and push the bottom of the knot gently, to move the knot closer to your collar.
Make small adjustments until you are happy with the knot.
To take the tie off:
1. Pull the free end of the knot around the neck while holding the knot and it should loosen.
2. Pull until there is no longer a loop around the neck.
3. Untie the knot left in the tie.

General Tips:

Check for symmetry. Adjust the knot so that you achieve optimal bilateral symmetry. Re-tie or upgrade to the Windsor if necessary. A slightly leaning knot can be wriggled with so it looks OK, but a seriously cockeyed knot will have the tie falling down your lapel and just look terrible. There are exceptions to this rule. Some knots are meant to be asymmetrical (often worn in Italy, for example).
Keep it tight. A properly tied tie will, unfortunately for the wearer, need to be pulled extremely tight against the neck. A tie too loose may convey unprofessionalism.
The Vicious V. According to the film, Outside Providence, a properly tied tie must possess the Vicious V. This is the sharp V formed by the scruching of the tie where it exits the knot.
For the tall. Tall people will find that the knot sometimes will end up way "up" on the tie where it is narrow resulting in a small unflattering knot. You may want to look for specially made ties for tall people that will solve this problem.
Be sure to dimple. Where the wider end of the tie exits the bottom of the knot there should be a clean symmetrical dimple.
Untie your tie. Untie your tie after you are through wearing it, also untie it the same way you tied it. Your tie will last longer.

Information and diagrams courtesy of:
http://en.wikipedia.org/wiki/Small_knot
http://en.wikipedia.org/wiki/Necktie
http://en.wikibooks.org/wiki/How_To_Tie_A_Tie