oops! Sorry about that. Anyway, I just played with it and I think that "1 dc into each of the next 2 dc" has to be a typo (IMHO). When I just do it in the next 2 single chains, it makes a nice ruffled edge that looks like what is on the rest of the top.
I just checked knitrowan.com and they don't have a correction for it. I did report it though, so maybe we'll find out if it actually is a mistake.