I used these instrutions to get started.
Also a discussion on Knitting Paradise
Some steps are hard to understand on the first try. So here I wrote up what I think is important.
I started with 30-0-30 and a hem. For the first trial you would just e-wrap and start. Mine is going to be a purse, so I started with a hem. Hem was 8 rows, one turning row, again 8 rows, picked up stitches, knitted to right.
COR: all needles to E except 30R, needle that is closest to the carriage, carriage on hold
knit 2 rows
then push one needle to working position every 2 rows until 9 stitches are in work (22R -30R)
then push the next 2 needles in working position (D) ( 20R and 21R), knit one row to left
COL: pull 10 needles on the right to hold, only 20R is in working position.
Picture shows COL, all needles to the right except needle #20 are pulled to hold.
Then knit to the right
COR: repeat always putting one more needle back in working position. Again when 9 needles are in work (12R-20R)
push the next 2 needles in working position (in the picture needle 10 and 11), knit one row to the left, all needles on right to hold, knit to the right on stitch 10, then start again with the next set of 10 stitches.
When you come to the last section and 9 needles are in work, put the last needle (30L) in work
and knit to left.
COL: Move the stitch on the left (30L) one over to the left to 31L. Put 29L-21L in hold.
* Start the second color yarn and knit to the right and back to the left
now pull empty needle 32L out and move 29L to 31L, knit 2 rows
again pull one empty needle on left to work and next needle from right move to 31L (to do this you have to move all needles from the group of 10 to the left, but leave out of work)
When the last stitch from color 1 is on needle 31L
pick up the 10 empty stitches from the side of the triangle knit in color one.
Knit one row to right,
put the 10 stitches on the left (40L-31L) in hold and knit back to the left. Now there are 10 stitches in work. COL: move 20L to21L, knit 2 rows, then 19L to 21L, knit to rows. Continue until 11L is moved to 21L (remember you must move some of the stitches and keep in hold), then again you have 10 empty needles and you pick up the stitches from the triangle underneath. Knit one row to right, all needles on left to hold (21L and on), then start over agin with the next square.
When you reach the right side, pick up the last triangle in color 1.
Now the color 2 needs to be a triangle too on the right side (all others were squares), so just decrease one stitch every second row on the right until there is only one stitch left on 21R.
Move this 21R to 30R to create 9 empty needles.
Change color, either color 3 or back to color 1.
Now needle position is 40L to 30R. Hang on the 9 empty needles (21R-29R) the side of the square in color 2
Now start all over knitting squares to the left.
20R--->21R, then 19R--->21R and so on
When you are all finished short row the very last row to again create triangles instead of squares.
In my case I made another hem to have the second side of the purse finished.