If I’m planning on frogging back several rows and I’m only dealing with Stockinette Stitch, where do I find the stitches to place on my needles. I’m wanting to take another circular needle and place the stitches on it before I start ripping. Do I use a crochet hook to pull up the horizontal lines between the knit stitches or do I pick up the loops that are in the row? Also, I’m concerned about putting them back on the needle without them being twisted. Does anyone have any suggestions?
Look at the vidoes in the “Fixing Mistakes” section here. There are several that should help.

I wouldn’t worry too much about twisiting stitches as you frog. You can always untwist them when you start knitting again.

You thread the smaller needle through the sts. I find it easier to rip back to the row above the one you want to put on the needle, then put the needle in each stitch as you pull out the yarn from the sts on the right needle. If the sts get on the needle twisted, that’s fine. As long as they’re on the needle you can straighten them out when you reknit them.

OK. That sounds easy enough…but, what’s the worst that can happen if I pick up a stitch from the row above or below the one I’m one. I’m trying to count my rows from, but I’m working with a lace pattern and I can’t be sure that I’m still on the exact row.

Just to clarify – I’m working with a size one needle and yarn the size of string so it’s kind of difficult (since the stitches are so small) to determine which stitch line I’m picking up.

Yeah, with thin yarn, it’s often easier to rip back to the row above, then take them out one by one. You certainly won’t get a st from the row above that way, and it’s harder to pick up one from the st below.