Yes. Step 2: You favor the mantra over anything else that comes up(thoughts,feelings...sensations other than mantra). If there is some energetic/emotional experience that is pulling your attention from the mantra, you can just allow your attention to be with it until you can easily favor the mantra again.
The pronounciation topic is tricky for me too because I am not native english speaking. Yogani's instructions and the recording on the link posted by Christi may be based on american pronounciation of "I am", which is different from the british pronounciation I learned in school. I still don't know what is right, although I can feel a subtle difference between both in terms ov where the vibration of the mantra goes.
@the man Click here to listen to the Yogani's recording of the mantra. I guess that your way of writing the pronunciation is correct, but can not be sure how you guys in Israel pronounce it. So it is best if you listen to the recording.