I am a pretty new knitter and after doing a few scarves and hats, I thought I was ready for a felted bag. I started working on this http://www.knitty.com/ISSUEsummer05/PATTsatchel.html. Here is the relevant part of the pattern:
Using circular needle and MC, loosely CO 38 sts.
Beg with a RS row, work 7 rows in stockinette st.
At end of last row, do not turn work but pick up and k 6 sts down adjacent edge of work, pick up and k 38 sts along CO edge, pick up and k 6 sts along rem edge of work. 88 sts on needle.
I have worked the first 7 rows and now I'm stuck. I watched the video on how to pick up stitches. Do I use one of the needles from my circular needle?
Then it says "pick up and k 38 along CO edge". So I guess once I've picked up the 6 stiches, I will be back at the CO edge. But I've always used the long tail cast on. What cast on should I use here?
I am hoping that when I figure that out, it will become obvious how to pick up the other 6 stitches. I understand that this will be the bottom of the bag, but I am having a hard time seeing how it will come together.
Any help/advice would be greatly appreciated!