We classify the free homotopy classes of closed curves with minimal se
lf intersection number two on a once punctured torus, T, up to homeomo
rphism. Of these, there are six primitive classes and two imprimitive.
The classification leads to the topological result that, up to homeom
orphism, there is a unique curve in each class realizing the minimum s
elf intersection number. The classification yields a complete classifi
cation of geodesics on hyperbolic T which have self intersection numbe
r two. We also derive new results on the Markoff spectrum of diophanti
ne approximation; in particular, exactly three of the imprimitive clas
ses correspond to families of Markoff values below Hall's ray.