Don't give up!
I've been following this thread and you're doing great! Especially for it only being ...what... you're second project?
You do need to switch to double pointed or circular needles to do the neckline. These may seem a little daunting at first, but once you figure out how to use them, I'm sure you'll be a pro! And there are videos here on KnittingHelp.com to help you. (Double pointed and circular needles allow you to knit "in the round" instead of "flat" -- i.e., back and forth).
Once you have the double pointed or circular needles, the rest should make more sense. You'll just pick up 32 sts along the left neck, knit the center stitch (on the safety pin), pick up 32 sts along the right neck and 20 sts along the back neck. If you're confused by the reference to "the 17 sts cast off", don't be. Just pick up those 17 sts and squeeze in 3 more somewhere and you'll have it!
From there, you should be in good shape!
But if you still have questions -- and who doesn't! -- you know where we are!