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Knitting Puppy question

I'm trying to knit a puppy for my little brother (Shown here: http://i574.photobucket.com/albums/ss183/PelletAR/11-20-09_2055.jpg) but I'm getting confused. Here is what it says:
BODY: (Make 2): Beg at nose, case on 12 sts, K 20 rows, end wrong side row.
Shape Leg: Case on 14 sts beg on next row - 26 sts. K 20 rows, end wrong side.
Ear (Make 2): Cast on 8 sts beg of next row - 21 sts. K 30 rows. Dec 1 st ea end of next 2 rows - 3 sts. Bind off.
FINISHING: Sew body tog leaving a 3" opening at lower body. Attach ears. Embroider eyes, nose and mouth as pictured. Stuff lightly, then sew lower body seam.
TAIL: With 3 strands of yarn, make a 4" twisted cord (Page 34). Attach to body.

I'm confused because first, it keeps saying wrong side but it's all knitted. And second. It doesn't say bind off on the Body, Legs or Ears. Do I transfer it to a Stitch Holder? But then what would I do with it? The picture (not that you can see it well) doesn't really show any seam lines. I am so confused. Can someone please explain this process to me? I am kind of new to knitting but I am a quick learner.

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