There are two parts to an inductive proof:
1. Assuming that a property is true for N, prove that it is true for N+1.
2. Prove that the property is true for some concrete N where the proof for step 1 holds.
The trick is that you need to be sure to pick your concrete N correctly, as the article demonstrates. In particular, the problem with the "solution" in the article is that the proof given for step 1 doesn't hold for N=1, because N+1=2, and then just follow the rest of the argument from the article.