I'm having trouble designing the FSM in this homework. I'm not sure if I'm completing the truth tables correctly.

What confuses me: In the state diagram, the top and bottom states are both 001. When I complete the state table, when the current state is 001 I'm confused what the next state will be in my truth table because according to the diagram it can be either 010 or 001.

 

Why don't you take a look here (http://www.allaboutcircuits.com/vol_4/chpt_11/5.html) and if you still have doubts come back with your questions.

 

Take a step back and make sure that you understand what the information in the circle for each state represents. You have, for the top state, 11/100. You have a total of four states, you have one input and you have three outputs. How is all of that information presented on the diagram?