Joining yarn in round when using 'on hold' stitches

Hello everybody,
I know the title is confusing, sorry about that. I’m really not sure how to phrase the problem I’m having, so I’ll do my best to explain.

I’ve been attempting this for 4 hours and I’ve frogged it every time. I’m currently knitting a socktopus for my son (found here: http://knitty.com/ISSUEwinter08/PATTsocktopus.php) I’ve completed 1 of 8 legs and everything has been fine up until this point. The directions I’m having problems with read as follows:

LEGS
K5; place remaining 35 sts on hold on waste yarn. Divide the 5 sts on the needle between 2 needles. Continuing from these sts, CO 3 sts using backward loop method, and place these 3 sts on a third needle. 8 sts. Join to begin working in the round. Beginning of round is located at end of newly cast-on sts

As I said, I’ve completed one leg with no problem. Now, according to these directions, I must pick up the next 5 stitches that were being held on waste yarn, divide between 2 needles, then CO 3 more stitches on a 3rd needle. I’ve done this, but once I begin working in the round, one I get a few rounds completed, I see that the wrong side of the work is facing out while the right side is facing in. I’m so incredibly frustrated because I don’t know what to do, I’m following the directions exactly as I read them, but the purl side ends up being on the outside. At this rate, I’ll never get 8 legs done. I honestly don’t know what I’m doing wrong. I have a feeling it has something to do with the 3 stitches not being connected and I must be joining it wrong, but I’ve done it umpteen million different ways and it all turns out the same. I’m just ready to throw it in the trash and be done with it.

Any help is appreciated…thank you.

If the RS is inside you are probably knitting on the inside of the circle instead of the outside circle. It has nothing to do with the extra cast on stitches. It’s a common mistake among knew knitters to knitting in the round. Just make sure that you are holding the needles close to you and the loop of knitting away from you. Look at the pictures here.
http://community.knitpicks.com/notes/Knitting_in_the_Round

Wow, thank you so much. Apparently, I WAS knitting inside instead of outside and just didn’t realize. Those pictures were a lifesaver, I’m totally bookmarking them for reference from now on. I’d been holding my DPN’s wrong all this time, no wonder I couldn’t get the pattern right. :frowning: Thanks again.