Oh, don't some directions drive you batty? I think what the pattern is saying is this:
Knit your first stitch, bring the yarn to the front, as if you were going to purl, then insert your right needle into the stitch on the left needle as if you were going to purl, but instead, just slip it to the right hand needle. Then, take the yarn that's hanging in front and bring it around to the back. So, you'd then be in position to knit your next stitch. Long winded, but I hope it made sense.