Melissa, I merged the two posts and I had to delete the pattern because you posted the entire thing. It's a copyright violation even for free patterns to do so.
Please just post the specific part you are having a problem with. Also be as specific as possible with your question. Just saying you are having trouble with the pattern doesn't really clarify what part.
"work the first rep with the teddy bear in St st and the background in Rev St st work the second rep with the teddy bear in Rev St st what does this mean"
This means on one set on the right side you would knit the teddy bear (dark areas) and purl the background (light areas) and on the next set you'd do the opposite - purl the teddy bear and knit the background. If this is back and forth knitting, then on the return row you would have to do the
opposite. I don't know how many repeats you have across,
but if you knit on the front side you'd need to purl on the
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Well seed stitch is knit, purl, knit, purl for the 1st and last 4
stitches of every row. Then on the return row you would do the opposite of what you see so you'd purl, knit, purl, knit
You can do a google search on seed stitch and see pictures.
About the slip stitch part, is that exactly how it is written? If
so, for every Row 1, I would seed stitch the 1st 4 stitches, slip the remaining stitches (except for the last 4) to the right needle (this is assuming you knit from left needle onto the right) without working them - this would give a slightly elongated stitch- looking more like a border?, and seed stitch the last 4 stitches.
It isn't every row 1, it says for every row. The beginning row doesn't have you slip, but for rows 2 and 3 of the seed stitch pattern, it does say that. Then slip at the beginning of every row after that (included in the 4 seed sts).