I just did something similar with the Booga bag I'm working on. Hope this helps...
Knit with your circs, unless you prefer DPNs. What I did was use a DPN to pick up the stitch w/ my left hand (starting at the far right) and knit it with the circ. That way it was less awkward and the stitch was on the circ exactly where I wanted it.
It's kind of like reading backwards. Here's the bottom, with the live stitches at the top. The capital X is my current live stitch. I turn the work so the A's are at the top and pick up a1 w/ my DPN and knit it w/ the circ that is holding X. Then I just go in a circle, throught the a's, then the cast-on row, then the b's, ending at top right.
I am suddenly afraid I've confused you more. Pictures just work better for me.
Thanks so much for these directions. They made it all click for me and I'm back in business now.