There is some important info that is not currently on the pdf from Cascade yarns - namely, how many stitches to cast on!

Here is how the pattern should go:

With larger needles, cast on 120 stitches and join to work in the round.
Round 1: p
Round 2: k
Round 3: p
Change to smaller needles and begin Lace Leaf Pattern. Work until piece measures 15 inches (38 cm) from cast on edge lying flat, without stretching.
Change to larger needles
Round 1: p
Round 2: k
Round 3: p
Bind off very loosely. Work in ends. Saturate with cool water and lay flat to dry blocking to finished dimensions.