Crochet In the Round

[yeahyeahstudios.livejournal.com]

I just KNOW one of you crafty ladies can help me with this.
I cannot FOR THE LIFE OF ME understand how to crochet in the round.
Every tutorial I find skips the part of explaining WHERE I'm supposed to put stitches.
For example, I really want to make the flowers from this Summer's Knit 1.
The pattern goes as follows-
Chain 5 and make a ring with first chain. Easy!
***To make the first round, chain 3 (which counts as first hdc) and chain 1
Continue to work (1 hdc anf chain 1) 11 times.....

***This is where I am lost. I have no idea where or how to chain or hdc anything!

Can someone PLEASE explain this. Perhaps with a picture? Or even more descriptions?
No one around here crochets so I am totally on my own!

Also, is this the same principle used for making arigumi? I've just gotta make one of those too!

THANK YOU