This is my version of the instructions, written in modern U.S. terms:

Star Stitch No. 1 (page 17)

This stitch pattern is worked in one directional only. Fasten off at the end of each row and begin again on the first side.

1: Make a chain of the required length (the repeat is 2+5), insert hook in second st from hook, yo and draw up a loop, draw up a loop in each of next three sts, yarn over and pull through all five loops on hook, ch 1, [insert hook through the tiny hole (star) formed by drawing the last five sts together, yarn over and pull up a loop, insert hook in back loop of last st of star, yarn over and pull up a loop, pull up loops in each of next 2 ch sts, yarn over and pull through all five loops on hook] repeat to end of row, ch 1 and fasten off.

Row 2: Attach thread with sl st in top of beginning chain (or in the eye of the indicated st), ch 3, pull up loops in second st from hook and in sl st, pull up loop in back loop only of next st, pull up a loop in the eye of next star, yarn over and pull through all five loops on hook, [ch 1, pull up a loop in the eye of the star, pull up a loop in the back loop of last st of star, pull up loop in BLO of next st, pull up a loop in the eye of the next star, yarn over and pull through all five loops on hook] repeat to end of row, ch 1 and fasten off.