Thanks! Your clarification finally makes sense. I've asked three experienced knitters and no one has been able to help me understand it.
Grand-daughters are here right now, so I can't attempt the pattern until later.
This is a scarf pattern. The set row allows for a beaded crochet trim. The set row is knitted as row one and the pattern row is knitted until correct length is reached and then another set row before bind off.
The set row and pattern row are nothing more than the stitches in original posting. It should be quick and easy but that yo in the beginning is troublesome. I'm sure, once I get the hang of it, it'll be a breeze. The book marks it easy but I've never seen anything like it.
I really appreciate your interpretation of the pattern, I'll let you know how it goes.