Alright, so this is the stitch pattern you're working with:
Rnd 1: Knit.
Rnd 2: * Sl 1 WYIB, yo, k1, pass sl st over yo and k1, rep from * around.
Rnd 3: Knit.
Rnd 4: K1, * sl 1 WYIB, yo, k1, pass sl st over yo and k1, rep from * to last st, end sl 1 WYIB, yo, drop marker and sl 1, pass 1st sl st over yo and 2nd sl st, put last st worked back on left hand end of needle and replace marker. Rep these 4 rnds for Pat St.
: all knit stitches
: Sl 1 WYIB (with yarn in back, slip the first stitch on the left needle onto the right needle, without actually knitting it
), yo (yarn over, see the abbreviations page that Hildie suggested if you're
), K1 (knit 1 stitch
), pass sl st over yo and K1 (with the tip of your left needle, pick up the stitch on the right needle that you slipped earlier on, it will be the third loop on the right needle currently, and lift it over both the yo and the K1 and drop it off the needle...in other words, the yarn over and the K1 will stay on the right needle and the slipped stitch will be lifted over them and dropped
) The * at the beginning of the rounds instructions shows the pattern repeat - at the end of the round it says 'repeat from * around', that just means that you go back to the * (ie. the beginning of the round) and repeat the same thing over and over until you get to the end of the round
: all knit stitches
: K1 (knit one stitch
) * sl 1 WYIB (slip one stitch with yarn in back, same as in round 2
), yo, k1, pass sl st over yo and K1 (same as in round 2
). Now, you will repeat ONLY from the *, the K1 at the beginning of the rounds instructions is before the * so it is NOT included in the repeat. The round 4 instruction says to repeat from * to last stitch, and then you will end by another sl1 WYIB. Now, you will work a yo, then you will take off your beginning of round marker, slip one more stitch, pass the first slipped stitch (currently the third stitch on your right needle) over the yarn over and the second slipped stitch and drop it off the needle. Now, put the first stitch on the right needle back onto the left needle, replace your beginning of round marker, and start all over again.
These round 1-4 form your pattern and you will repeat them as many times as the pattern tells you to. The end of that round 4 instruction sounds way more complicated than it really is. Take it one small step at a time and you'll do just fine!