pattern says
row 3----- knit to last 10 sts P1 sl 1 (as to knit) k2 PSSO (pass slipped st over both knitted sts for cable twist) (P1 k1) 3 times
row 4—(P1 K1) 3 times P1 YO (counts as 1 st) P1 K1 purl rem sts
so when I go back on row 4 do I count the slipped 2 stitches as 1 or 2 stitches
On row 4, just count whatever loops that are on the needle as one stitch, regardless of what you did with them on the previous row.
On row 3, you slip one stitch, but that gets passed off the needle over the two knit stitches, so it no long exists. The two knit stitches are still two knit stitches, though.
Thanks Ingrid 
Once again you ROCK :happydance: :happydance: :happydance: