First of all, if the block is 1 7/8 finished, I would make it 2", you can always square up later. The best method that I have found for making HST is purchasing papers or purchasing the Triangulations CD for $30. It has every size HSQ and flying geese you will ever need. It is a CD which I have used for many years, well worth the price. You just print out (from CD) on paper the finished size of the HST, lie it on the two pieces of fabric, sew and then cut on the lines. Absolutely PERFECT every time, no trimming necessary. I use this method for practically every quilt pattern I sew.

The kit is telling you to cut QUARTER SQUARE TRIANGLES, not half square triangles! If you do half square triangles the bias edges will not be in the middle of the patch where they need to be. I would cut 2 squares of scrap fabric and cut and sew as directed before you try to use all the rest of the fabric in the kit. That way you know what the block should be like as far as size and grain before you cut the rest of the fabric.

All finished
 

Well, it is done! Thank you to all who helped with the original question... (yeah for QB members). The designer was very helpful as there had been some corrections so she sent a corrected pdf of the instruction page. Thanks again to all of you!