I looks like you're working up an edging for the leg openings. You can see how to pick up stitches here: http://www.knittinghelp.com/video/pl...-knit-stitches
To work them evenly around the edge, roughly divide the opening into 4ths and put 8 (or 9) stitches in each section. It's ok if you skip some of the knitted stitches in order to pick up the right number of stitches. It will pull in the leg openings.