Alrighty, here's the instructions (mostly for me, so I can see them as I type):
Row 1: K2, [color=green][b]inc 1[/b][/color] by knitting in back and front of next K st, K4, [color=red][b]sl 1, k2 tog, psso[/b][/color], K4, [color=green][b]inc[/b][/color] in back and front of next st, repeat between *'s twice more, end with K2.
Row 2: K2, P39, K2
To knit into the front and back of the same stitch you will knit the stitch normally, then before slipping the original stitch off the left needle you will knit into the back of the same stitch. Now slip the original stitch off the left needle and you have increased 1 stitch.
It says to repeat between the *'s twice more, so that means that you will actually be working the stitches between the *'s THREE times total. As long as the number of increases equal the number of decreases, you will keep the same stitch count for the next row. I've put the increases in green and the decrease (which is actually a double decrease) in red. There are two stitches increased and two stitches decreased in each repeat of the * section.
Hope this helps.