Take some other yarn and cast on 44 sts and practice the pattern. K 2 or 3 rows, then do row 1. Remember to do the middle part twice - P2. K2tog. yo. P2. yo. Sl1. K1. psso - then the p2, k2tog yo. You won't have enough to repeat from the * again, but should have 13 sts to do the end of the row alright. Also, a YO doesn't use up a stitch, it just wraps the yarn around the needle.
So here's how it goes -
*P2. - 2 sts
Work 1st row Lace Panel. - 9 sts
(P2. K2tog. yo. P2. yo. Sl1. K1. psso) twice. - 8 sts times 2 = 16
P2. K2tog. yo. - another 4 sts.
Rep from * to last 13 sts. - can't do any repeats with less sts
P2. Work 1st row Lace Panel. P2. - 13 sts
So you've got 2+9+16+4+13 = 44sts. You start and end with the same number of sts.
sue- knitting heretic