I ended up casting on with the size 6 needles, more like a coat bottom. The tight bottom scared me off. I worked Stockinette stitch for about 4 rows, then on next knit row, k2 at front of row, then( yo, k2tog) across to last 4 st. on last 4 st i did yo k2tog, k2.
I worked about 4 more rows stockinette and folded my work on the yo row. it makes little picots. I knitted my cast on edge with my current knit row. that sewed it down for me.
a couple more rows of stockinette, my cast on for front steek, and then I worked all of the first graph now working in the round. I am on row 5 of the next chart, the little lice chart. I think i will do the lice dots as i realize now they will only be one row out of every 5 rows. Tomorrow I will start with row 5 of this second chart. This yarn knits like a dream!!
Here is a Excellent example of a picot knit edge. remember this one has been knitted in the round. Mine is flat, back and forth knitting, knit 1 row, purl 1 row until I was ready to cast on for the steek and work in the round. But you can see the method on this link.