Yvette left me a comment on my previous post:

Stranded knitting? I'm not familiar with that term

Stranded knitting is the general term for the method used in traditional Norwegian and Fair Isle styles (and other intricate colourwork patterns)where two colours (or more) are used in a single row of knittting. Techknitter just started a series of tutorials on this subject with a terrific introduction. This type of work is called stranded because the non-working strand is carried along as you knit with the other and neatly woven into the wrong side of the fabric as it is being constructed.

Another good reference resource for anyone getting started with two colour stranded knitting is Fair Isle Knitting. There you will find lots of wonderful links to numerous sites offering everything from instructional videos, books and kits to really fabulous free on-line tutorials, and to phenomenal works of eye-candy in this style of craft-art.