Hi Katti,
Welcome to the forum. I just worked this up and it comes out fine. I think you might not be understanding how this is worked. You crochet in the round, however, you work 5 stitches in Color A, then 5 stitches in Color B, dropping the color and leaving the loop to be picked up again as the instructions explain. This is work as a spiral so you don't join your rounds as you work around, you drop the color, and then pick up the next. Here are a few photo's that I hope will help. If you need further assistance, just let me know.
    
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