Beads are placed with the crochet hook technique as you go to avoid yarn damages. I like to suggest a helpful, inspiring & enlightening article about knit and beads from the talented-super-dearest designer Sivia Harding – “Seduced by Beads” at Knitty.com even if your are familiar with this technique! http://www.knitty.com/ISSUEspring06/FEATseducedbybeads.html
The concept is a delicate and yet warm garment with a lace stitch and the subtle sparkling effect from the beads.
On the Round 3 is suggested to place a marker at every 6 stitches only to facilitate following the chart/written pattern. Please, feel free to ignore this step if this detail do not work for you and only knit the round.