First off, let me say that I’m assuming that the words “ranks” and “points” are synonymous when talking about skills; if this is wrong, let me know.
Say I gain a level in Bard and my Int modifier is +3 (and I’m not a human). I gain 9 skill points. I previously selected Knowledge (arcana) as the Knowledge skill to benefit from my Bardic Knowledge ability. So now I have 10 skill points, one of which is slated for Knowledge (arcana) already. Then I get another skill point for gaining a level, which brings me to 11 skill points, one already slated for Knowledge (arcana). And finally, half my level to all Knowledge checks and I can attempt them untrained.
Are they basically saying that Bards start off with 7 + Int modifier skill points per level (plus an additional one devoted to a single Knowledge skill)? Or am I missing something?