I've retitled and moved your question to a new discussion.
Booklets should be set up as facing pages with each page defined at the trim size of the finished booklet, so in your case you want to set up as 4 x 5.5 portrait facing pages, plus wahtever bleed allowance you might need. Page on will be by itself, and the remaining pages, up the last, will appear in two-page spreads in reading order. The last will be alone as well. For a folded and stitiched book you must have a multiple of four pages.
That solved it, thank you.
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