Thanks for asking. I'm using Kid Seta, which is 70% Super Kid Mohair and 30% silk. It recommends size 3 or 4 needles. I'm using size 5, at my yarn shop's suggestion.
When I started having problems, I stopped and began a sample of the same pattern using a yarn I thought would be easier to manage. The yarn for the sample is Opal, a wool blend. I'm using a size 4 needle. The sample is a very different type of yarn, but, once I got to about row 7 and started the "offset" of the pattern, the same puckering showed up.
If you picture a leaf pattern, it looks like each leaf is a little pouch.
My thanks to those of you who have replied so far. I appreciate your help with getting this solved.