Transitional Recessed Surface Tutorial Question

 From:  David (DAVIDL)
5829.1 
I'm going through this tiutorial:
http://moi3d.com/forum/index.php?webtag=MOI&msg=4880.1

and I'm a little lost about extruding the Diversional Curve and whats blending after that to make the "peeled away" part.

Thanks,
David