How do you knit short rows? I am confused on how to wrap around stitches.

If you want to have the row you are working on less one stitch - you take two stitches and place the needle into both stitches at the same time then wrap your yarn as usual. This way it decreases your row by one stitch. You can do this at the beginning or end of the row - but it is usually done at the beginning of the row.