I am so in love with this method of knitting in the round! I know that I am rather late to the party, but I hadn't heard of it before I started my latest knitting project. So that I don't forget this method, I am going to try to post a photo tutorial:-
Step 1 :: Choose the longest circular needles in correct size for project (my cable is 100cm).
Step 2 :: Cast on required amount of stitches (42 for this project).
Step 3 :: Divide stitches in half and pull needle cable to create a "magic loop" at this point (I now have 21 stitches on each side of the cable loop).
Step 4 :: Slide front portion of stitches (with starting tail) onto front/left hand needle. Working tail is always at the back.
Step 5 :: Pull enough cable through back portion of stitches to allow easy use of right hand needle. Join into the round with cast on edge at the bottom of work, making sure that the knitting isn't twisted.
Step 6 :: Work all of these stitches as required by project.
Step 7 :: Then turn work so that the right hand needle with the recently worked stitches is at the back and slide the portion of stitches that are on the cable onto the new front/left needle.
Step 8 :: Move stitches from back needle onto cable and pull enough cable out to use needle in right hand (as in Step 5).
Step 9 :: Continue working in the round as per project pattern.
It sounds complicated, but it isn't if I can do it! :)