Well, I am probably too new to fully comprehend just how confused I really am......
But I cut and paste the following directly from the Arduino bitwise page here: & - Arduino Reference
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.....So if we write PORTD = B00110001; we have made pins 2,3 & 7 HIGH.
You always start from the least signifigant bit, so that 2^N tells you the value of the bit. Otherwise, bit zero could be 128, 32768 or more depending on the size of the word.