Not a silly question at all. You're doing short rows and the Note is describing how that is done. The purpose is to put extra rows in an area or your knitting in order to give shape to it. This ,video http://www.knittinghelp.com/video/play/short-rows
will show you the process.
When you slip the stitch from left needle to right and when you slip back again, slip as if to purl. Just put the needles tip to tip and move the stich from one needle to the other. Don't work the stitch.
When you turn, you're on the next row. So after the short row on row 1, turn and work row 2 to the end. The same goes for all the even rows, after the short row turn on the odd rows, work to the end on the even number rows.