Another trip to the frog pond

OK, so I have a beautiful shrug, love it, it fits, love it. I got a bit confused on the picking up stitches part. I think I had it backwards or something as about an inch into the body tube part I realized I'm knitting it inside out. Somehow I am knitting inside the circle and the body is showing up with 3 purls and 1 knit, which really DOES not look good. I'm gonna frog it, but not sure how to start the picking up so it doesn't happen again. Anyone else do this or am I the only stitch-challenged one so far? cripes. I'll post how it goes the 2nd time around.

When I first picked up stitches, the seam part was showing up on the outside of the shrug. I didn't think it was supposed to be that way, so I picked them up with purls to get the seam on the inside. Somehow that got me knitting along the inside of the tube. Who the heck knows what I did? Ah well. I'm off to frog city. At least I only had an inch into the body tube.

NOTE: Thanks for the comment, I also went to the LYS and said "WTH" (aka what the HECK--which doesn't offend as many people in public as my usual WTF's seem to do) is wrong with me? I didn't have the RIGHT SIDE facing me. I was picking up stitches from the inside to the outside instead of poking the needle from the right side to the wrong side. Much better now. I'm off to work and then reknit!