Ok, its kinda policy here to only post the part your having issues with....its a copyright thing. Also, easier for the readers to focus on exactly what your having issues with....So you prob should edit your post to focus on what the prob is....in this case you prob dont need any of the pattern. Your question is about knitting in the round, which will cover any pattern knit in the round. If you look at the bottom right hand corner of your little box which contains your message...you will see an "edit" button. Click on it and edit away.
but to get on with your question.....
You would cast on the appropriate amount of stitches, in this case, 8, onto one of your double pointed needles, and then take the amount of stitches, and divide the amount of stitches by the amount of DPN's. In this case theres 8 stitches. your using 5 dpn's 4 of those will be hanging on to your stitches and the 5th will be the one you work them with. So you would divide the stitch count by 4, gives you 2 stitches...
To confuse you even further.....sometimes your cast on stitches dont always divide out evenly. Sometimes the pattern will tell you how you should divide them out, but if they dont... S'ok...just stick that extra on one of the needles somewhere.
Take your 4 dpn's and put 2 stitches on each needle from your already casted on 8. these stitches are already joined and you will just work each stitch as it comes even if its on another needle. You will want to hang a marker or somehow know where the end of the row is. I use the tail of the cast on to know where the end of the row is. Once you get a few rows done...you will see that they are all still connected, and you have just knit a tube....LOL
I wish i was there to hear the.... "holy cow!! thats pretty cool" ....moment...LOL
Heres a link
to some info and some videos about a couple of different ways to knit in the round.
Hope i didnt confuse you more....