The carry out will allow you to use multiple 4017s as ones and 10s type of counter. You do not want to use this for a continuous counting sequence.
Bill Bowden's circuit does not make a very good tutorial and I would recommend using the AND gates. I would also use gates for the clock instead of 555 if accuracy is required. Of course, if you are only blinking lights, neither of these two points matter, since the inaccuracies cannot be seen by the eye.
Below is the link to a site that shows several 4017s cascaded correctly. If you follow the way that each triggers the next and the last step resets the circuit, you will learn how to cascade as many 4017s as needed. I think it will act as a pretty good tutorial for those who have questions about cascading this chip for multiple LED strings.
http://etronics.free.fr/montages/eflum/EF01/EF01.htm
On this site, click on the link "Schema ef01.pdf" to get a larger schematic in pdf.
MP