First, I actually used a long ruler to score where the long valley folds in step 81 are, rather than trying to fold a straight line with all the pleats.
Then I precreased everything, (which I assume you have done).
But what is basically happening, is (viewed from the stomach) you are creating a point, (where the two large mountain folds meet, that becomes the point), and then folding that point underneath. The zig-zag folds immeadiatly above the point are the result of the point being folded under, (the tip basically becomes the top of a water bomb base), which has been attempted to be shown in step 82.
Now that I'm looking at it, (I folded it a couple of years ago), I didn't directly follow the directions, I only folded the horizontal mountain and valley folds in the middle "column", and I just now realized that in step 81, step 80 has been partially folded, which explains the shrunken zig-zags (because you are looking at them from an angle).
As for compensating for the extra paper on the side from the long vertical valley folds, I did what was shown, just not to that extreme.
I also found it helpful to fold the vertical folds to keep the pleats from unfolding during the collapsing.
Anyway I hope this helps and its not too late! If you're still stuck, I can upload the photos of my head, in hopes of clarification.
Do you think you'll ever fold the whole thing? I did after folding the head twice(to make sure I knew how to fold it), and the paper stretched down my entire hallway!! O.O