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So in other words, the first row is literally the first stitches I pick up.
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That's correct, you do just pick up the sts knitwise, then start the rib on the next row.
According to the instructions - "with right side facing pick up and K46sts evenly down left side of front neck and 46sts evenly up right side of front neck, work across stitches from back neck inc 2 - 128sts." - it seems to me that you start picking up from the left front neck, then the R front neck and end with the back sts. So if you started picking up with the back sts you won't be in the right place to begin the next row at the left front. I think you can just k2 p2 across the back sts, then begin the instructions for R 1 "1st row: (P2, K2) 20 times, P2tog, place a marker into loop before next st to mark centre front, etc" and work your way around the neckline.