Ingrid, here is what I have in front of me.
So, what I think the pattern is telling me is that I knit up to the hole, replace the hole with the sts on the red holder and knit the rest of the row. Then work until it is 17".
Maybe I am just not understanding my "pocket lining"...it is the actual pocket right? I thought I would be picking up the sts from the top of this peice to make the pocketband and attach the sides later. My confusion lies in the sts on the gold holder what do I do with those?[/img]