Jan, I thought I might add this link which along with your posts helped clarify what I need to do - was having so much trouble communicating the issue, reason being that since I'm turning the work, where I am holding the yarn becomes an issue as well.
What I think I'm getting is that sometimes a pattern will tell you generally to slip a stitch. From what I've read on the internet this project is really easy but the instructions lacking for a beginner like me - it's why I held off on it for so long now.
If I slip all the stitches purlwise (the ones that need to be slipped) as she indicates, then I won't have a problem with the yarn placement for the slip - just place the yarn properly for the next stitch. It also takes care of the purl stitches which you've indicated should be slipped purlwise.
Wondering if I should hold out a little longer, I might still be confused lol. I'll be happier starting over again but wanted to thank you again since I hesitated going any further.
I can see why so many people love this project. It's a great stash buster and done in a few hours tops. Quite pretty too!