I tried this pattern, can't remember where I got it, but it had a very nice illustrated drawing on it that showed the exact folds - but I still couldn't figure it out. It was easy and went fast so i figured, might as well ... and it turned out really nifty! The only change my target audience (sister) wanted was to sew up the sleeve with a little seam as the fit was rather strange. So next visit to the US I will take some of the yarn to do that little thing for her.
It was fun to knit up something that I couldn't figure out how it would end up looking (if that makes sense!)
It is in my Picasa album, not sure how to post pictures here, but this is the link. (My mom is modelling it!) If you look at the second picture you'll see what I mean about the sleeve.