No, you were correct in your thinking to follow the instructions after the * until you had 9 stitches remaining. However, you are now following the second part of the instructions after " rep from * to last 9 sts;." If you have 9 sts remaining you will have a sufficient amount of sts to complete the row. This may sound silly, but try counting it off on your fingers (for visualization). If you don't count the 4 yo (because you are adding stitches to replace the ones taken out from k2tog and psso) and you only count the sl 1s, k 1, k2togs, and the k2 you only use 9 stitches.
Judge: Madame, either you will have to cease knitting or I will have to cease judging. Which shall it be?
Miss Marple: It helps me to concentrate, milord.
Judge: It does not help me, madame.
Miss Marple: Oh. Very well. (puts away knitting)
Judge: Thank you, Madame.
The lyf so short, the craft so long to lerne.
~ Geoffrey Chaucer - The Parliament of Fowls Line 1.