I like the figure-8 lashing thing, but I do mine through a climbing biner at each end, not the ends of the tree huggers... this also provides something of a drip ring, but i have soaked my hammock completely through in a three-day steady rain, even with only a tiny bit of cord exposed and the lashing covered.
In answering a related but unasked question, I am a fan of hennessy's diamond tarp for obscenely hard light trips, but generally use a larger tarp. You just have to work a little harder at site selection.
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