I have read and watched all the tutorials available to make a fondant loop bow and have wasted almost 5 lbs of fondant trying to make one. What am I doing wrong? I have tried laying the loops on their side to dry and I have also tried laying them over a dowel rod, broom stick, rolling pin etc. The loops always just look more oval then loopy (is that a word). Any suggestions?

I stuff mine with wadded-up paper towel until the loops are fully dry. They hold their shape great this way for me. Also, don't have the fondant too thick either. I roll it the same thickness I would to cover a cake (don't know exact measurements, I eyeball it.)
Then, just carefully pull out paper towel, and voila'!

Try using gumpaste instead. It's more expensive than fondant (I've only bought the Wilton brand, not sure on the cost of making it yourself). You will find that gumpaste can be rolled much thinner and holds it's shape much better, it dries really, really fast so you have to work quick. I just started using it and love it.