Hi everyone! Brand newbie here. I just finished up my first dishcloth project and am wanting to move onto something for my impending arrival

I know and feel comfortable with CO, knitting, purling, knitting and purling in the same row, and BO. That is the extent of what I have done.
I like the look of this blanket alot.
http://www.straw.com/cpy/patterns/ba...by-blankt.html
A few questions... I am brand new to increasing, haven't done it all yet. Just watched videos. I am hoping by watching the how to videos, I can figure it out as I go. I am not sure I understand the terminology on increasing in this pattern though. Can someone help me decipher? Is it saying that on row 3 I should be increasing on the next to last stitch of the row? And then the next to last stitch on every odd row thereafter? Is that right?
On circular needles... I have only used straights. From what I understand, I need to do this on circulars and just pretend I am knitting with straights? You just do the exact same thing with flipping your work over to start a new row that you would do on straights, etc...?
Lastly for now. I don't understand how you change your yarn color in the middle of a project without having to CO all over again and then basically having two separate projects. How does that work? Do you cut your yarn from the old skein and then tie the new skein on or something?
Also, if you think this blanket is too challenging for a newbie, please say so. I really like the look of multi colored blankets and that was the main reason for being drawn to this pattern. If you have another suggestion, I am open to that, too.
Thanks so much
