Virtual Stitch 'n Bitch

Hi,

I've never done either of the above before, and am a VERY new knitter, so please bear with me.

I have found the following project: http://www.helloyarn.com/miniskulltote.htm. This is the firts non-stitch n bitch pattern I've tried and Im having a bit of trouble with the skull aspect of it.

Does it need to be done in intarsia or fair isle? It sounds like a crazy mixture of the two.
Also, how does one go about attaching the new yarn - I've only ever needed to start at the beginning of a row before, and in the Knitters Handbook it says words to the effect of it would be stupid to change colours mid-row.

Sorry if I'm a bit vague with the question-asking, I've got a bit cinfused with this one, so any pointers, tips or anything would be good.

Thanks.

The bag is done in intarsia.
Go to knittinghelp.com and click on advanced techniques. I really can't describe how to intarsia.