You might want to practice this on about 20 sts or so to get the hang of it, but I think you just repeat row 2 twice more. That should give you purls and knits to establish the ribbing. You only slip 1 stitch pwise, then knit a stitch, slip a stitch, k 1, slip 1, all the way across. The next row, I think you'll be slipping the st that was knit on the previous row (which will look like a purl on this row) and knitting the one that was slipped. Ignore the part about the knit YO, that's just information to tell you which stitch is which on row 2, it doesn't have anything to do with rows 3 and 4.
sue- knitting heretic