After two technical editors and several people, including myself, have knitted this simple lacy scarf, we have one typo. Oh well, such as life...
In the very beginning of the project it should say:
"CO 36 sts. Begin lace patt." (instead of 34 sts.) Page 37.
Make sure that you place your markers after 2 sts in the beginning, and before 2 sts at the end. Those sts are your border sts, and they don't count into your lace pattern.
Good luck! It should be O.K. now, and if not...let me know.