The canonical quantization of diffeomorphism invariant theories of con
nections in terms of loop variables is revisited. Such theories includ
e general relativity described in terms of Ashtekar-Barbero variables
and extension to Yang-Mills fields (with or without fermions) coupled
to gravity. It is argued that the operators induced by classical diffe
omorphism invariant or covariant functions are respectively invariant
or covariant under a suitable completion of the diffeomorphism group.
The canonical quantization in terms of loop variables described here,
yields a representation of the algebra of observables in a separable H
ilbert space. Furthermore, the resulting quantum theory is equivalent
to a model for diffeomorphism invariant gauge theories which replaces
space with a manifestly combinatorial object.