Well, first of all, you are working a M1k so your should be working this increase
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Pickup horizontal strand between st just worked and next st, place on LH needle, k this st (inc 1).
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You should be doing something like this:
http://knittinghelp.com/knitting/vid...crease/m1f.mpg
Secondly, the directions you are working from say:
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Rnd 2: Knit. Continue to inc 4 sts in this manner every other rnd
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Which means that the manner in which you increased the previous row is how you should do it again this row.
It appears that you are Increases once, working to where your stitch marker is, increasing again, knitting 2 increasing, work back to the other stitch marker, increasing, then knitting the last 2 stitches.
Your increases will always be lined up at the same point and the increases will add 4 stitches to the expanses between the stitch markers.