Hi HGS,
When it says player 1 is the ghost, it means that you should take the schedule for 8 players, and then delete all the matches that involve player 1. This will leave you with a schedule that involves 7 players ( numbered from 2 to 8 ) with 3 matches per round. In each round, the player who was scheduled to play the ghost in the original schedule, is now the player with the bye.
Hope that helps,
Ian