2nd page, "begin ruffle pattern and work until 9 ruffles." What ruffle pattern? The one above that with the 5 rounds?
*Yes. The "pattern" is these rounds consisting of one ruffle round and four garter stitch rounds.
Then wouldn't that make the skirt awfully long if I do 5 rounds of regular yarn, then 1 ruffle, yarn and do that 9 times?
*No. Garter stitch is shorter than stockinette so the space between ruffle rows will not be that great.
The work even for 2 more ruffles? Does that mean to just do 2 rounds of knitting the lame and yarn together?
*No. After doing 9 ruffles there is a row which includes decreases (to 90sts). Do these decreases as part of the garter stitch between ruffles continuing to work even (90sts per round).
Then do two more ruffle patterns but on 90 sts not the original 96.
Also, instead of wool can I use cotton and acrylic yarn??
*Sure. Acrylic may stretch a bit but is washable. Cotton will hold its shape and is washable. Personally wool in children's clothing is just a no-no for me - it can't be washed and kids are messy!