Lisa..... If my answer totally misses the mark, please forgive me.
Step 2 - I think this requires you to take 20 'new' jelly roll strips and divide them into 5 sets, 4 strips in each set. (Using different fabric pieces than step 1.)
Step 3 - this step has you take 4 pieces of fabric grouped together from step 2 and sew them together. You do this 5 times.
Then, you cross cut these strip sets into 4 1/2 inches (9 from each set). This is makes @45 little sections. These are a different set than in step 1.
I 'think' you were trying to use the fabric from step 1 in step 2. But they should use separate pieces of fabric.
Does this help at all? Or am I off base too?