@Becky, Looks like you read the label more carefully than we did. I went to the manufacture web-site and they had a good FAQ where I found this info
Q. How harmful is the wet permethrin right after applying it to clothing?
A. The directions for applying permethrin from the aerosol can to clothing state that the fabric should be allowed to dry before wear or handling. However, contact with the wet material should pose minimal concern but should be washed off. The amount of permethrin available for skin absorption is very low and is not expected to cause adverse effects.
Q. Is Permethrin dangerous to my skin?
A. The warning labels on the cans or bottles are often misunderstood. Your skin metabolizes, or breaks down Permethrin within fifteen minutes of contact with skin. Therefore, it is of no value to you as a personal protection insect repellent when applied to the skin. In addition, the EPA precautionary statement, "Do Not Apply to Skin" indicates that Permethrin is ineffective when applied to skin; therefore, do not apply to skin.
Also a nice video here
http://www.youtube.com/watch?v=IH5h0qU4EQ4 .
I plan to give it a try. It would certainly be nice if it works as well as they say.