Yep, that's what a slip stitch is - slip it from one needle to the other. It's going to be a little looser which is why I don't like to do them; I work the first stitch then pull the yarn a little and do the next stitch or two a little tighter. That leaves the edges nice and even. But they should all be the same, so if you started the hood by slipping, you should keep on doing it, it may look fine when you're done. Odd that it's just on row 3 though and not 1 and 2.
The pattern says to increase IN the last stitch and that would be a kfb. The other increases are done between stitches and don't use a stitch.
sue- knitting heretic