I don't know how helpful this is anymore. I tried to knit a swatch that was as close to what the picture looked like and I came up with this: http://flickr.com/photos/39549049@N00/47659770/
It is not a very good shot but the eyelets match up vertically and horizontally.
Over and even # of stitches
Row 1 (RS) *K1, yo* till the last stitch K1
Row 2 (WS) Purl all stitches
Row 3 (RS) *K2tog, yo* till the last stitch then K1
Repeat Row 2 and 3 till you have what you want.