what i would do with those instructions is:
yarn over - bring the yarn under the working (right needle), up and over to the back (original yarn position)
Also, your description makes it sound like you are doing yarn front/forward and yarn back instead of yarn over. You want to make sure you bring the yarn over the working needle or you won't get the lace holes that you need.
i always wind up with the hole the way i am describing it... bring the yarn forward, under the needle to the front, up, and over the right hand needle then knit the next stitch. i have done many, many, many lace patterns this way & always have a hole where i yo'ed.
as for the slipped stitches, i think it really doesn't matter in the end which way you do them... as long as you are comfortable with the way you are doing them!