The reason for putting the wider end of the front and back at the ends of the needles is to give you the shaping that you see in the picture. This way, it curves in nicely at the waist. You can continue with the sweater the way you have it oriented now, but it'll just be a little wider under the arms (which may be nice shaping too) Otherwise, reverse the fronts and back so the wide parts are at the tips of the needles.
You know, the pattern seems to contradict itself? The position of the back and front (front on the left needle, back on the right needle) means the front gets knit first, since you knit off the left needle and onto the right, but at this step, it sounds like the back is first! Don't let it bother you, the back or front are the same at this point (only the neck shaping is going to make a difference).
"This is the part Im upto in the pattern
On the circular needle, With RS
facing, K3, Sl1 and continue to
K across the 64[66:68:70:72]
sts of the Main Body – Back "
This is like the set up row of many projects, it's almost always a pain but once you get past this you'll be fine. Put it down for a while, do something else maybe and come back to it when you're ready.