Vogue Holiday 2007 pattern Help please!!

[lamundie]

I have the Vogue Holiday 2007 Knitting Magazine, and I have never had a problem with a pattern, but this one is confusing.

The pattern number 25 Fringed Wrap, Has set up a Panel #1 with 106 rows, and Panel #2 with 106 rows.

First you cast on 70 stiches, and then Row #1- work 20 sts in panel #1 and 8 sts in panel #2, and 14 sts in panel #1, 8 sts in panel #2, 20 sts in panel #1
Cont in pats as established until piece measures 37 "
well all of that equals 70 stiches but the panels are set up in rows?

well does sts mean stiches or sets? the panels go by rows? This pattern is confusing me, read it all weekend and I feel really stupid.
thanks in advance. Lori