Oh. i'm doing this same project, but I'm not sure what to do on step 5, when i'm dealing with the sleeves. the picture is kinda complicated
It's more simple than it looks. Take the two lower edges, and match the seams together, right sides together, so that basically the 2 openings are facing each other. Once it's stitched between the dots, and turned right side out, it creates a pocket out of the sleeve.
I don't even have it at home with me right now, a friend borrowed it, otherwise I would take some pictures :\