First row - Sc in 2nd ch, ch 1, skip (miss) a st (ch), sc in next st... There. You just made a space, a ch-1 space. Sc, ch 1 across, always skipping a st between the sc's. All those skipped foundation chain stitches are ch-1 spaces.

Second row - Ch 1, sc in first sc, sc in next ch-1 sp... means to poke your hook under the ch-1, not through it, draw up a loop, yo, and complete a sc. Then ch 1 and do another sc in the next ch-1 space. Etc.

You're doing a crochet stitch pattern called granite stitch or seed stitch. Annette Petavy describes it in http://crochetme.com/issue_1/stitch_dictionary_two.html about half-way down the page.

Hope that helps.

Thank you so much!!!