Your manual (pages 31-38) contains excellent step-by-step instructions for Fairisle.
Knitting 2 colors in the same row
- Thread the carriage with one end of yarn in the "A: feeder
- Knit several rows in plain stockinette, ending with the carriage on the left
- Insert a punchcard and set the lever to the ● mark
- Set the Change Knob to "KC" (knit card) and move the carraige from left to right (needles will be selected)
- Push in the Upper MC button
- Set the card lock lever to ▼
- Thread teh second yarn end into yarn feeder "B" (without opening the gate)
- Push the carriage to the left while holding the yarn with your left hand
- Continue Knitting