I was following this tutorial from BlenderCookie (with 2.62 though), and there is this artifact, that just does not work as expected. I modeled the rope out along the x-axis. The median of the left circles is exactly at x-location 0, and the most right exactly at 10. Therefore when applying an array modifier should easily merge the ends together. What I get however is a gap.
Move the array modifier above the subsurf modifier. The modifiers are applied top to bottom, you want to subsurf an array, not array a subsurfed object Then increase the merge distance value until the vertices merge.
Found the culprit: Obviously I did the extruding not exactly along the x-axis. While the difference between the left most and right most circles is exactly 10 units on the x axis, they do not line up on the y and z axis. This fixed, it matches perfectly.