Normally you knit by putting your needle into the front loop of the stitch. When you knit into the back loop, you slip your needle in from right to left into the back part of the stitch.
sl, k, psso is a decrease. You slip one stitch from left to right needle, knit one stitch, then pick up the slipped stitch with the point of your left needle, bring it over the stitch you just knit and pass it off the tip of the right needle.
http://knittinghelp.com/knitting/vid...crease/skp.mpg