Can someone translate this knitting pattern for a novice knitter please?

[CaptainJackSparrowIsMine]

I'm knitting a dress for a teddy
I've knitted the bodice front (up to row 16 which was purl) . Now it says:

Divide for neck
Work 7 sts, slip next 4 sts on to a stitch holder, turn, work 7 sts.
Continue on first 7 sts for side of neck.
Dec 1 stitch at neck edge on next and following alt rows until four stitches remain.
Cast off

When it says 'work' do I continue what I was doing with stocking stitch (same as bodice?
So basically knit seven stitches, put four on holder. (row 17 knit)
Turn needles round and purl the 7 stitches decreasing at the end (which end?)(row 18 purl)
Row 19 knit
Row 20 purl decreasing one at the end
Row 21 knit
Row 22 purl decreasing one at the end
Row 23 cast off

Is that right? Knitting patterns can be soooooooo confusing!
Thanks.

Yes, work means continue in the pattern you have been doing (stocking stitch)

You are doing your decreasing on the edge which is the neck edge, not the arm hole edge. So, if you are doing the right side of the dress, the neck edge is the left hand side of your knitting when you are looking at it from the front. If you are decreasing on the purl side then your first stitches on that row are decrease stitches.

Do you have 7 stitches on the other side of the 4 which are on the stitch holder for the other side of the dress - that is the only thing that is confusing me at the moment?

Yes, you continue working in the pattern in stocking stitch.

You are decreasing only on your purl row at the far end...

Row 18 - Purl 5, purl 2 together (6 stitches)
Row 19 - Knit
Row 20 - Purl 4, purl 2 together (5 stitches)
Row 21 - Knit
Row 22 - Purl 3, purl 2 together (4 stitches)
Row 23 - Cast off knitwise

For the other side it will be

Row 17 - Knit 5, knit 2 together (6 stitches)
Row 18 - Purl
Row 19 - Knit 4, Knit 2 together (5 stitches)
Row 20 - Purl
Row 21 - Knit 4, knit together (4 stitches)
Row 22 - Cast off purlwise

Does this make sense?

Hmmm - I read this as decreasing for a raglan sleeve...

I would say it was

Row 17 knit 7 stitches (next 4 put on the stitch holder)
Row 18 purl 2 together and purl 5
Row 19 Knit
Row 20 purl 2 together and purl 4
Row 21 knit
Row 22 purl 2 together and purl 2
Row 23 Cast off knitways

I am assuming that you are dividing for the neck so if you knit 7 stitches that is the right hand side of the neck as you are looking at it (it would be the left hand side if you were wearing it) because the next 4 stitches are presumably the scoop of the neck. Since you are decreasing on the purl row and you need to decrease to shape the neck you decrease at the beginning of the row. It would be the other end if you were doing the arm shaping.

Does it have sleeves?

I freely admit I could have it all completely back to front but without seeing a picture and the work in front of me, that is how I interpret the pattern. It is difficult without being able to see what is going on isn't it!?

Right! I've read everything and had a go. They aren't raglan sleeves, it is effectively a sleeveless dress - a ballet dress so I am knitting a sort of vest shaped piece which I will attach to a similar piece on the back via the shoulder then picking up
the neck edges I had cast off (five stitches) then the four on the stitch holder then another five coming up the other side to create a scoop neck, it was very hard going, I had cast of quite tightly as I didn't realise I would be picking it up again but I think it looks ok! Goodness knows if I've done it 'properly'
Thanks everyone.