Errata for downloads prior to 5/7/08 in RED:
Turn Heel: Row 1 – k 18, ssk, k 1, turn. Row 2 – Sl 1 p wise wyif, p 5, p 2tog, p 1, turn.
Row 3 – Sl 1 p wise wyib, k to one st before the gap, ssk, k 1, turn.
Row 4 – Sl 1 p wise wyif, p to one st before the gap, p 2tog, p 1, turn. Repeat Rows 3 & 4 until all heel sts are used up, ending with 18 sts on a purl side row, turn.
Gusset: Knit across half the heel (9 sts) with needle #4, knit remaining heel sts with needle #1; with same needle, pick up 16 sts along edge of heel flap plus the bar between corner of heel and instep sts (26 total). Work in pattern Rnd 1 across instep, knitting the one extra st at the end of needle #3. Pick up the bar between last instep sts and heel flap, pick up 16 sts along edge of heel flap, k 9 sts across heel. The center of the heel marks the new beginning of the rnd.
K 9 heel sts, k 17 picked up sts through the back loop (tbl), work two repeats of Rnd 2 of lace pattern (plus 1 st) across instep, k 17 picked up sts tbl, k 9.