Do R 1 as k, R 2 as purl, R 3 and 4 would follow the instructions for R 4. I think. Try it as written flat for 2 repeats over about 16 sts, then look at the RS and see if what I suggested works. When you knit in the round, do it over a multiple of 4 sts, dropping the +2 which are the sts before the *.
sue- knitting heretic