My grandfather, and his uncle before him, used to own a candy store. Sadly, he sold the store when I was young, which still saddens me to this day. As of a couple years ago, the building sat empty. I think the last tenant was a Mountain Man Fruit & Nut store.
As I recall, pulling taffy is pretty much what it sounds like; you pull on it to stretch it out, then fold it over, give it a twist or two, and pull it again. Repeat until desired texture is achieved.
There is a taffy store in Estes Park, Colorado that has a taffy pulling machine in the front window. When I was younger, I used to love watching it work. Fascinating.