Help with Jordy Bag

[butterfield8.livejournal.com]

Hi, I know many people know about the Jordy bag: http://www.craftster.org/forum/index.php?topic=7866.0 but for some reason I really don't understand the instructions. This is probably because I'm fairly new to sewing. I don't understand the squares cut out, nor the pinching of fabric... etc. Is there a different tutorial like this or can anyone write it differently? Everyone says this is an easy tut. but I just dont get it!