1. Follow the overall instructions above for a helical strip, but use the following stitches:
Casting on (3n + 2 sts) -- Reverse yo left needle, yo, k1, * sl 1 back knitwise, yo, k1, sl 1 back knitwise, yo, yo, k1; repeat from *; end: sl 1 back knitwise, yo, k1, drop the stitch just knit and tie it.
Rows 1 & 2 -- * Twist 2nd st, k2 tog-b dropping 1, yo, p2 tog-b; repeat from *; end twist 2nd, k2 tog-b, yo.
Row 3 -- Twist 1st st, p2 tog-b, * twist 2nd st, k2 tog-b dropping 1, yo, p2 tog-b; repeat from *.
2. Once row three is started, you have merged the top and
bottom edges to
form one continuous mobius strip edge with 2n + 1 sets of three
stitches. Keep knitting the 3 stitch pattern until the strip is of
the desired width. Bind off in the usual manner, passing each stitch
over the next stitch, but don't do yos, and after each purl stitch
twist it to the left (sl 1 back knitwise, sl 1). 
To pick up stitches correctly, you should experiment first with slowly dropping stitches of the mobius pattern off the needle and observing how to put them back on correctly. Also note that when the stitches have just had the casting-on pulled out of them, the purl stitches are rotated quite a bit to the left. You must rotate them more than 180 degrees to the right (counterclockwise as viewed from above) to put them on the needle correctly.
For best results, we recommend shortening the stiff ends of your circular needle, which makes it easier to work with when wrapped twice around a small circle. If you do not have a modified needle, it may be easier to do the picking up of stitches on a double-pointed needle and transfer them to the circular needle every few stitches.