How do I knit this iPod hoodie?

I’m knitting an iPod hoodie, but I don’t understand some of the directions. What does this mean?:

“Knit to 1st marker and place sleeve stitches on spare yarn, knit back section and place 2nd sleeve sts on yarn, finish row.”

And also, what does it mean to pick up stitches?

At this point, you’re separating the sleeve stitches from the body stitches. When you put the sleeve stitches on a spare piece of yarn, and start knitting in the round, you’ll connect the front and back at the armpit. Later on, you go back and finish the sleeves.

Amy has video on picking up stitches[(http://knittinghelp.com/knitting/forum/../videos//bas-tech-more/picking-up-sts.mpg)]here]([http://knittinghelp.com/knitting/videos//bas-tech-more/picking-up-sts.mpg)

At this point, you’re separating the sleeve stitches from the body stitches. When you put the sleeve stitches on a spare piece of yarn, and start knitting in the round, you’ll connect the front and back at the armpit. Later on, you go back and finish the sleeves.

Amy has video on picking up stitches http://knittinghelp.com/knitting/videos//bas-tech-more/picking-up-sts.mpg

So how do I “separate the sleeve stitches from the body stitches”? Do I start knitting the sleeve parts on another needle with a different yarn end?

Putting the sleeve stitches on the waste yarn will separate them. They’re just telling you what this step is doing.

After the body is done, you’ll go back and use a new strand of yarn to work the sleeves from where they are now down to the cuff.

I’m curious as to why stitches are placed on yarn and not on a needle…??

I still don’t understand…what do you mean by putting them on waste yarn? Do I put them on another needle?

I think it means to use a yarn needle and pull a strand of yarn through those stitches, so they don’t fall apart, while you work on the other side.

You put them on yarn, rather than a needle or stitch holder because the yarn is flexible. The sleeves will turn into tubes as you connect the body, and the hard things would get in the way.