The directions were a bit off. If you also have Knitting Around (my copy is a sixth edition) and would like to correct the pattern in your book, here are the changes to make (page 113):
1. K2, slip 1, K1, psso, *K8, turn
14. Sl 2 p'wise, wl fwd, Sl 3 p'wise, turn
17. K2, Sl 1, K1, psso
18. With left needle, pick up 8 stitches along selvedge PLUS the 3 from the right needle. Then, with right needle, K2, Sl 1, K1 picked up stitch (a selvedge stitch), psso (3 stitches). Replace these three stitches onto left needle. Now: (K2, Sl 1, K1, psso, replace 3 stitches on left needle) 7 times. Repeat from *.