I'm a little confused about knitting in rounds. I'm using 5 double pointed needles and when you do stockinette stitch, you knit every round, right? This is what confuses me. When I knit every round reverse stockinette stitch is on the outside and the inside has the stockinette stitch. Is it supposed to be like that? I've seen pictures showing that the stockinette stitch is on the outside. Please help me!

With sockenette in the round you knit every stitch.

If you were knitting flat you knit the front (first) row, turn and purl the second (wrong side) row. When you change a pattern from flat to round you have to reverse the stitches on the wrong side.

Maybe I'm not knitting correctly? The stockinette stitch seems to be on the inside of my work.

Is it possible that you're knitting on the 'inside' of the square formed by the 4 dpns instead of on the 'outside'? That would put the v's on the inside with the bumps on the outside. Try the free video tab at the top of this page under Advanced Techs, Knitting with DPNs to see what I mean about knitting on the outside of the square.

Maybe I'm not knitting correctly? The stockinette stitch seems to be on the inside of my work.

This is a common problem. As you knit look at the positions of you needles. The working needle should be in front and the other needles in the back. Try turning you work inside out.

With the working needle (the one with the yarn going to the yarn ball) on the right?

If so continue knitting with the working needles in front.

Check out this video

Stitching Diva (http://www.youtube.com/watch?v=WEXlHPcE9QU)

You're probably doing the knit sts on the inside, so you can just flip the tube inside out and they'll be on the outside. Then hold the tube so the working yarn and needles are closer to you with the other needles further away.

Here's another good still picture of how you're supposed to be holding them. She's using a 16 in circular, but how you hold them is the same. You're working on the outside of the tube.
http://www.knitpicks.com/tutorials/Knitting_in_the_Round__D52.html