craftgrrl | Knifty Knitter Patten Issues

So I've been trying to do this pattern for wrist warmers from Rostitchery for the past few days. I've tried it a few different ways, but ... I can't figure it out.

Has anyone used this pattern before and made it work? I guess what I'm mostly confused about is how she says to do it on the "blue loom"; well, I have two of those. A round one and a flat one. I'm not sure which ones she means, but I doubt it's the long one and I tried this on the round one last night and I can't get it to work.

*facedesk* ANY help is MUCH appreciated.