Beth,
The selvedge damage is minor and easily sorted. It is also unlikely to get any worse unless they are out and in an area of foot traffic. I would take a snippet (is that a word?) of the wool to a craft shop and get a skein of two ply tapestry wool. Then with a double strand through a needle secure in the existing selvedge by threading it through (on the back of the rug) the overcasting tying a knot then running it through again before oversewing the edging to match the current overcast. Finish off and tie in the same way as you started. If you lived within a hundred miles of Manchester I would pop down and do it for you. I most likely have the wool in stock. Appletons tapestry wool has the best colour range in the UK anyway.
As far as moth damage goes, the worst thing you can do is roll up dirty rugs and put them in dark but accessible place. You have ticked two of the boxes by sealing and cleaning them but I guess if there is moth in them already it makes it harder. Moth killer spray should kill off anything left but it isnt 100% for eggs. I think you should keep that one out and do the repair, spray it and keep an eye on it. then return it to its packaging once the coast is clear as they say.
Phil
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