You're right there's a typo step 3) should read: "Towards you through middle roller of upper block."
Pretty straightforward really, lay the blocks on their side, with the camcleat of the single ratchet block towards you the follow the instructions in the manual.
I've numbered the steps in the following two pictures.



Here's a link to a useful page from harken, I haven't found instructions for reeving your system there, but a nice source of info nevertheless:
http://www.harken.com/rigtips/rigtips.php