I need some serious help for all you knitters out there that have made a sweater before. I have not, this is my first time and I choose this because I thought that it would make a good first easy sweater. Well it has been so far....except that I'm totally stuck and stranded (no pun intened).

Here are the directions for the "back" of the sweater:

1. With #17 needles and 3 strands of yarn held together, cast on 24 stitches. Work in stockinette until back measures 9-1/2".

2. Knit 7 stitches, put the center 10 stitches on stitch holder, attach another ball of yarn, K7 stitches.

3. At neck edge every other row, bind off 2 stitches one time. Put all stitches on a stitch holder.

So, I am at #2 and I knit the 7 stitches, put the center 10 on the holder (I'm assuming this is where the collar will be), and then I got stuck.
Do I knit the last 7 stitches casting the 10 stitches on the holder aside creating a big hole?
And, whats up with adding another ball of yarn. So now I'm knitting with 4 strands?
Then for #3, I don't understand at all....

HELP PLEASE.....I REALLY NEED SOMEONE TO EXPLAIN THIS TO ME IN BEGINNER BABES TERMS!!!

Hi there, ok so You knit the 7 stitches, put the 10 on the holder add another ball of yarn so you dont have to carry the first one over those ten stitched, you would knit one side, then the other. Does that make since? e-mail me if you need more help jersey178@msn.com

On number three, your makinf that round neck line
they want you to bind of the two stitches on the knit row, then do a purl row. then put the stitched on the holder so you can attach the front later

Thanks for the help guys, it totally cleared it up. I'm really trying to decide if the problem is that i'm a new sweater knitter of if the pattern is really poorly written.

Sherri---I'm going to figure out how to put it together tomorrow with a friend, so if you give me your email, I can email you instructions. Or your blog address and I can post there.