Chain 90; join to make round. Chain 1 but do not turn. (You're working in the round!)
Rnd 1: Sc in each chain around; slip stitch to top of ch 1 to join. Ch 1.
Rnd 2: *sc in next 2 stitches; put 2 scs in next stitch* Repeat between * and* around, slip stitch to join; ch 1. (You now have 120 stitches total)
Rnd 3: *sc in next stitch, dc in next stitch* Repeat around. Slip stitch to join.
Rnd 4: Ch 3 (this counts as your first dc), sc in next stitch. *dc in next stitch, sc in next stitch* around. Slip stitch to join. Ch 1.
Rnd 5: Repeat round 3.
Rnd 6: Repeat round 4.
Rnd 7: Sc in each stitch around.
Rnd 8: Ch 2 [yo, insert hook in next st and draw up loop, yo and draw through two loops on hook] 3 times. Now yo and pull through all hoops on the hook. Ch 5. *[yo, insert hook in next stitch and draw up loop, yo and draw through two loops on hook]4 times. Yo and draw through all loops still on hook. (You made a four stitch double crochet cluster.) Ch 5.* Repeat between the * around. On the final set of chains, only chain 2 and then dc into the top of the first cluster -- this completes your last loop and puts you in the center of it for working the next round.
Rnd 9: Sc in the loop, ch 6. *sc in center of next chain loop, ch 6* repeat around. On the final loop, only chain 3 and dc into the top of the first sc.
Rnds 10-11: repeat as for round 9, only do ch 7 between scs.
Rnds 12-13: repeat as above only do ch 8 between scs.
Rnds 14-15: repeat as above, doing ch 9 between scs. (You will notice as your chain loops get longer that you need to do the final loop differently. You might need to chain 4 and do a treble crochet into the top of the last sc -- I didn't record what I did, I simply tried to make the last loop the same size as the others in this round. If you pay attention, you'll be fine.)
Rnds 16-17: repeat as above with ch 10 between scs.
Rnds 18-19: repeat as above with ch 11 between scs.
Rnd 20: repeat as above with ch 12 between scs.
End off. Work in all ends. Add fringe if desired and if you have any wool left. If you want very long fringe, I recommend three balls of wool.
For further assistance, see the Posh Poncho FAQ.
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