The symbol means bind off. I haven't done it yet, but my attempt at translating this does seem to mean BO 5 at the beginning of the first two rows (that is, 5 on a public side row, then 5 on an inside row. Then you continue doing it just like you said, only binding off instead of slipping the stitches to a holder. The calculations should work out. They did when I did it (i.e., calculated it, not worked it). You then sew in the sleeves into the armholes when the sweater is all done.

Actually, here was my translation, posted at the beginning of the month. I will repost here with yours:
First, you bind off 5 stitches at the beginning of the next two rows. Then you decrease 1 stitch every row 3 times, then 2 sts every row one time. Continue these 2 decreases 9 times. Then, decrease 1 stitch every row 8 times. This should be done over 54 rows, and you should have decreased 49 stitches in each armhole, leaving 40 stitches for the back neck. Knit one row even and put those 40 stitches on a holder.

Well, I mapped it out, and here are my findings...all the shaping is done on 54 rows.

If you bind off 5 stitches EACH SIDE (meaning on the same side), then decrease using k2tog and ssk for left and right leaning decreases, then a k1 at the beginning and end of EACH SIDE...you'd do

3 rows with the decrease each side
1 row even
*4 rows with the decrease each side
1 row even repeat from * 7 times more
9 rows with the decrease each side

40 stitches remain, slipped to holder.

and it works out. 54 rows, 49 stitches each side.
Any other configuration doesn't work, and you might be mis-reading the decreases--it's not 2 sts every row one time, it's 1 stitch every other row 1 time...for the 2-1-1 designation.

I had to graph it out on an excel spreadsheet in order to make it happen for me--it took 3 tries and several sheets of paper. NOT an easy thing to see, but if you bind off 5 stitches at the beginning of the next 2 rows, you will be doing 55 rows, which isn't according to the pattern, and if you were to add a work even at the end, it would be 56 rows....

Really, you have to graph it out to be able to see it...though I'm not sure how to bind off 5 stitches at the beginning and end of the first row, and I'm tempted to believe that it's not a bind off at all, but slip them to a holder to work into the underarm somehow.

I am pretty sure you bind off 5 sts on next 2 rows. It does come out to 55 rows, but so what. Many things about this sweater are different from what we are used to. Twist sts on wrong side rows, for one.

I think that I finally used a little ingenuity on that point too...

Yes, to BO 5 stitches on the first 2 rows, but also do the decreases on the second row; ie...

bo 5 first row
bo 5 dec 1......dec 1 second row....would still keep the # of rows intact, and give you the same # of decreases...

Also, it appears that from the CHART, you begin with a PURL decrease (evidenced by the underline below the decrease symbol...)

Is there a PURL SSK?????????

I get confused when I have to do left leaning and right leaning...which is which?

Yes, on the purl side it's an SKPO...see

http://www.tata-tatao.to/knit/stitches/decrease/e-index.html#pdecr

I just love answering my own question...but this is a good place to put the answers, and I can refer to the website at work....:)

I like to knit at work during short breaks. I can get about 5 rows knit during the day, and several more when I get home.

Tenna, Thank you so much for all of your research. I sat at work yesterday at my break trying to figure out how you do the decreases in 54 rows. I was having the same problem you were. I am only on row 20 of the main body of the back but it is nice to know you have solved the translation before I reach the decreasing :). I wish I knit as fast as you. I slow down on the wrong side with those twisted purls.

Susan

Susan, it just takes "keeping at it". I agree, those twisted purls are a bugaboo...it does take me longer on the wrong side, because I have to "envision" which one is supposed to be twisted...something that might help, is that on the wrong side, the stitch in the back is the twisted one. It made things go much faster after I figured that one out.

I haven't posted yet but have been swatching and reading with interest. Has anyone thought of knitting the sleeves in? Knitting the whole body up to where the armhole decreases start, then knitting the sleeves up to where the armhole decreases start and then joining the whole thing and knitting the whole sweater to the finish line? I don't know if this would just confuse things but it seems like I've seen that done on other sweaters. My thought for the day.

My mentor tells me I can do this (knit the decreases on armhole and sleeves at once). I'm waiting till I get there and then I'll let her help me, as I haven't done that before...

I am planning on knitting the sleeves first (both at the same time) up to the underarms, then the body to the same place then putting them all on one needle to do the decreases. Saves the sewing up of the raglans. I am also thinking about doing the body in the round but have to figure out how the ribbing works with this. I am starting with the sleeves to get the feel of it so I have time to figure it out. I am also working on the FLAK so I have a good bit of time to think

There are others who are planning to work the sweater in the round. Some are turning it into a pullover. These designs are literally made for that sort of thing.

Me, I need less confusion my first time through, and I want a sweater I can WEAR after all this work...and trust me, it's been work.

The second time I work the sweater (perhaps 20 years from now---) I may just work it in the round, but it's too early yet to decide.

:)