I knit my socks on 4 dpns rather than 2 circs, but I'll jump in on this one and give it a try! Needle 1 has you decreasing (once near the beginning and once near the end, right?) on the bottom of the foot near the sides. Needle 2 has the stitches that go across the top of your foot and you are going to keep the number of these constant till you start decreasing for the toe. If you're working in stockinette stitch, "K across needle #2" means "knit all stitches on needle #2 without increasing or decreasing". If you're working in stitch pattern other than stockinette, it means "continue your stitch pattern on needle #2 without increasing or decreasing".
Knitting is more like tying your shoes than it is like patting your head and rubbing your tummy at the same time.