It looks like you use two dpns. From looking at the pattern, you'll have the edge band stitches on your dpn and will take a stitch off the circular each time you do the ssk, keeping 11 on the dpn and having one less stitch on the circular.
When they say to work in pattern, you should knit the knits and purl the purls as they face you.
I'd bet that there's lots of information on this pattern in the forum at Knitty. :thinking:
"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