YES!! I understand at last!! Thank you so much for your time Steve.

I have been looking at it all wrong. I can see moving the bits now. I thought each bit value, a 0 or a 1, was the 4 and 5 bit part of the number, so when you removed the lsb's, you shifted everything, and what was in 6 and 7 is now in 4 and 5 and is the new state.