The pattern reads like this:
Row 1 - MC*k3, k1wrapping yarn twice*, repeat to end of round
Row 2 - CC1 k3, s1 dropping wrap repeat to end of round
Row 3 - CC1 k3, s1 (this will be the same stitich slipped in the previus round and will be MC ) Repeat
Thanks for all your help. My mom has been teaching me to knit, and she's out of town....