OK, forgive me 'cause I'm a novice at this....but what does the other side lok like? Is it possible that something is messed up and the ws is actually the reverse stockinette?
As for the directions, working it out on paper, it appears that you've done everything right and what you ended up with is exactly like it should be (even though according to the pattern it's wrong)...in other words, had I done it, it would have turned out the same way.
Can you get in touch with the pattern designer and ask if there's an error in the pattern? I notice on a lot of sites that have free patterns, there will sometimes be a correction to the original so patterns aren't always perfect.
Good luck....maybe someone with more experience than me can give you better advice.