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"For cross st, skip next st, K next st and leave both sts on needle, K skipped st and slip both sts from needle at same time."
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You skip the first stitch at the end of the left hand needle and knit into the second stitch on the left hand needle. To do that insert the right hand needle like normal into that stitch, yarn around and pull up the new loop onto the right hand needle..stop there, don't move anything off the left needle. Then knit into the stitch you skipped completely normal and then when you slip it off the left hand needle slip the stitch you first knit off the left hand needle as well.
This makes kind of a mini-cable, or a little twist thing. You may be doing it right, but it will take several rows of it before it starts looking like anything. It doesn't really look like a cable, but a vertical row of twists.