I am working on the neckline and this is coming up and I am not sure what much of it means:

Divide for Armholes:
Next Row [Row 15 of Neckline Decrease Chart, RS]: Work 14[17, 17, 20, 23, 26, 29] sts in pattern, k2[2, 3, 2, 1, 1, 1] and place these 16[19, 20, 22, 24, 27, 30] sts on hold for Right Front, BO 6[6, 6, 6, 8, 8, 8] sts, work 38[44, 48, 50, 54, 60, 66] sts in pattern (39[45, 49, 51, 55, 61, 67] sts on right needle), working selvedge sts in stockinette st, and place these sts on st holder for Back, BO 6[6, 6, 6, 8, 8, 8] sts, k1[1, 2, 1, 0, 0, 0] (2[2, 3, 2, 1, 1, 1] sts on right needle), work in pattern to end. 16[19, 20, 22, 24, 27, 30] sts.

Here's my progress pic, did anyone else's look so... mushroomy at the bottom?

It's my first project in the round and I am getting nervous. I've already had to restart five times or so and I really don't want to screw up and have to cast on another 84 stitches.... 
When it says to put stitch markers every 12 stitches, is that during or after the first 3 3/4" I do in St st?
Do I start decreasing right away, I guess is the right question.

Edit:

Here is the finished hat! I am so stoked, I did I-cord and magic loop for the first time too!!



Yes, I am wearing clothes. And I'm paranoid about revealing myself to the internet...

I lie, this is actually my second non-rectangular object. As I was making my first bikini top, I decided that the cup size looked way too big, made it a good 12 stitches smaller, and therefore made something much too vulgar for these parts of the internets.



Don't mind the provocatively placed spittle on the mirror

from http://www.knitty.com/ISSUEsummer03/PATTtwins.html

It's made out of some acrylic that I'm guessing is about 25 years old (I picked it up at the bf's grandma's).

I want to make bottoms, but all of the patterns I've seen are brief style and I don't want to make briefs because a) I don't want to deal with fitting them and b) I think they look hideous on me. Does anyone know a free pattern for string bikini bottoms, or have any advice? I'd like to make them to (somewhat) match the top.