Wow! - I was quite surprised to see this thread surfacing again after so long - nearly 12 months since I posted it!
Welcome to the Forum, We2Boat - and many thanks for the great salvage job.
There's a YouTube video (sorry, there's no sound) on something called 'Moderated Magic Loop', which seems to show that it isn't vital to have the stitches equally divided on the needle. The knitter is just working a few stitches at a time and then sliding them down the cable.
Here's the link:
Since I originally posted the thread, I do most of my circular knitting - mainly babies hats - using Magic Loop. I had another go using dpns a couple of weeks back but I find the 'Loop quicker than messing about with scaffolding.
All the Best