larudden: That dishcloth is knitt in the round. (Also, you might want to check for this error in round 24
, depending on what printing you have.
Rachel: The pattern is a sort of knit medallion. Think of it like knitting a circular shawl, but all the decreases are in a row, so you get corners. It actually makes more sense to knit it in the round, if you've seen the dishcloth (which is not a square but a hexagon, if memory serves- although you can easily knit a square in the round, too).