The [brackets] mean you are going to do everything that is inside them in that ch.

After you make the foundation row,
first ch (you are skipping because you are starting in the second ch fron hook)...
second ch sc
third ch skip
fourth ch skip
fifth ch dc, ch2, dc, ch2, dc
sixth ch skip
seventh ch skip
eighth ch ch

"After I do the first dc and ch 2, where does the 2nd dc go?"
Ans: All that (dc, ch2, dc, ch2, dc) goes in the fifth ch.
Hope this helps. If not, post back and someone else will probably explain it better for you!

Oops... should have re-read that...
Should be

eighth ch sc, not ch as I wrote. Sorry.

Thank you! That answered my question.

Red Confetti.... here you are again... you do EVERYTHING! My goodness you're one talented lady.

Hmmmm. This sounds familiar. Is this a scarf pattern from a free flyer? A friend who I'm teaching to crochet wanted to make this scarf and couldn't figure it out either. It is a very pretty pattern and will make up quickly.