The arbelos on a segment AB is constructed by dividing it through a point C in two parts and drawing half-circles with diameters AC, CB and AB. Woo gave a very simple construction of the incircle D(DN) which is tangent to all three half-circles. J and K are the middles of the sides of the squares erected on AC, CB. The figure is self-explanatory.
The reason for the validity of this construction is explained in Arbelos.html . The incircle D(DN) is the inverse of the circle with diameter GF with respect to a certain inversion with center at A. Symmetrically it is also the inverse of the circle with diameter IH with respect to a certain inversion with center at B. Hence the center D must lie on the intersection of AK and BJ. This construction together with the three pictures below are discussed in: Peter Y. WooSimple Constructions of the Incircle of an Arbelos Forum Geometricorum Volume 1 (2001) pp. 133–136.