I agree, it IS confusing. I've not made this but here's my take on it.
I think round 8 is worked with the right side facing. the 2x2 rib is worked up to the top. (the smocking wraps are added in where needed but this should not effect the rib sequence).
On RS rows, replace first two sts of smocking pattern with sl1(purlwise), p1, and end the row with p2. On WS rows, replace first two sts of smocking pattern with sl1(knitwise), k1, and end the row with k2.
This note on pattern is important. I think you may be missing this part. I didn't 'see' it first read through either.
So assuming your round starts with k2, pattern for round 8 in full would be
Round 8: RS,
BO 6 sts, sl1, p1, begin smocking pattern from chart, (k2, p2 across)
ending with p2, turn
round 9; WS, sl1, K1, p2 k2 across, end with k2.