So I was trying to do some two color ribbing last night, and I think I managed it. You know, where all your purls are one color and all your knits (on the right side) are the other color. I was using the two handed standing method. I have a question about it, though.
When I used this fair isle method on just stockinette, there was no problem. Carry the unused color to the back of the work while I'm working the right side and to the front of the work while I'm working the wrong side. But when I did this in ribbing, something was strange. So when I was on the wrong side, I held color A in my right hand and knit English and color B in my left hand and purled Continental. But since you have to bring the yarn to the back in order to do a knit stitch, after I did my knit stitch with color A, I would have to bring the yarn back to the front because I was about to purl with B and color A, as the unused yarn, should be carried at the front of the work on the wrong side. I tried bringing the yarn back to the front by wrapping it over the right hand needle and this was a disaster. Then I tried bringing the yarn to the front by bringing it under the needle. This created a kind of strand of yarn over the needle, not really a yarn over because it didn't make a hole. And I was at least able to correct this on the right side by sliding that extra strand of yarn off and to the back.
But is there a better way to do this? I mean, it's no prob in st st because you knit with yarn to the back and purl with yarn to the front, so, the unused yarn is always carried on the wrong side of the work. But what about for ribbing?