Issue with Backward Loop cast-on and purling

[mstellaluna]

I am making DH a winter hat and ran into a MAJOR snag when making the brim of the hat.

Prior to P2 rounds I had to cast on stitches using the Backward Loop method.

When P1 round, I got left over with a long tail..can't do anything with it..it's just there...

When starting to P2 round, I can't. It makes 3 strings of yarn and doesn't knot properly....It's like it stuck somehow....

Pattern:
Norwegian Star Earflap Hat
http://tiennieknits.typepad.com/tien...gian-star.html

Yarn: Bernat Silk
Color: Black
Size Needles: US 6