Hi Joyce, I'm by no means a pro but I might be able to help. I've knitted a number of scarves using the drop stitch pattern. I've always started with a k1, yo,(yo as many times as your pattern calls for) k1, repeating across the row, ending with a k1.
on the next row, knit the knits and drop the yo's, and you should end with a k1.
As for how to yo continental it's easy as pie. I just scoop the yarn around my right needle. Just make sure you do it so the yarn is coming off the back of the needle. Amy has a video on yo in the increase section under basic techniques.
A yo is not necessarily a dropped stitch, only if that is what you're to do. It's also used as an increase.
I hope that makes sense to you.