After you make each leg, it says to cut the yarn, so where the yarn is on each leg is no longer important. Just let it hang and weave it in later.
I'd just have the right side facing and start knitting at the beginning of the needle on the front. You're working in the round on two circs, so you'll knit the front section on it's own needle and then turn it over and work the back on it's needle.
"Trust the pattern!"
Time flies like an arrow, but fruit flies like a banana.
Hop aboard while we follow the cloud-covered van of knitting harmony, man!! Woooo!! --Hedgehog
IngridKH on Ravelry