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You don't have to use the 'disappearing loop' method to CO, you can do a regular one, then join to knit in the round. Next there's a set of stitches that you repeat 4 times on each round for 26 trounds. On the first round yes, you repeat k 2yo, k 4 times. Knit 1, yo2, k1 and repeat - that takes 2 sts times 4 uses the 8 sts. At the end of this round you'll have 16 sts. I imagine you do a plain round after this, then another increase or pattern round.
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sue- knitting heretic
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