It looks like the "4-1" and the "2-1" are referring to the different sizes (either M or XL). So for M, you'd do the first directions 4 times and the second directions 2 times. Then you'd skip the third directions (you've got a 0 for your size there). Don't forget to do the "1 sc in joining sp between motifs."
And, yes, since this is for the body, you are working in the round. Notice the last line of the directions you quoted says to "Join with sl st to first sc. (244-268) sc."
Lovely pattern. Do come back and post a picture when you're done! PLEEEEEASE!