Scalloped Edges

    With contrast yarn, cast on over required # of stitches in 1x1 rib (an odd number of stitches).  Knit 3 circular rows at the appropriate tension for your yarn.  Set both carriages to Hold Position.

I usually pull every 6th needle on both beds to Hold Position on a standard gauge machine, but you can do every 4th needle, or whatever works with what you are knitting

Change to main yarn and knit 4 rows at your ribbing tension.

Release Hold button on the main bed and knit 1 row.

Release Hold button on the ribber, and knit the number of rows to complete your ribbing which is about 4 rows less than what you would normally knit without a scallop.  (ie., If you usually knit 20 rows of ribbing without a scallop, then you would knit 16 rows after you have completed the scallop). 

Transfer ribber stitches to the main bed and continue knitting the body of your sweater (you will generally increase one stitch on one side of the piece to give you an even number of stitches for knitting the body of the sweater).