A yo creates an eyelet--exactly what you're getting. When you p1, yo, p2tog, you're creating a row of holes, basically. So that extra loop is supposed to be there. Make sure that you're doing the yo between purls correctly just to be sure. Look in the videos above.
As you work the next rows you'll see how it all comes together neatly.
"Trust the pattern!"
Time flies like an arrow, but fruit flies like a banana.
Hop aboard while we follow the cloud-covered van of knitting harmony, man!! Woooo!! --Hedgehog
IngridKH on Ravelry