1) You don't take your number when you find it. I guess my brain assumed "find" meant "find and take with you to prove you found it." Perhaps a better term might be "encounter."
2) Here's a much better explanation (thanks micaeked): http://datagenetics.com/blog/december42014/index.html. Essentially, the algorithm works because following numbers to drawers will eventually create a loop (e.g., drawer 2 points to 4 points to 6 points to 2). By starting with the drawer with your number, you're guaranteed to be in a loop with your number. The only question is whether your loop is less than 50 drawers long...
Furthermore, this confirms that there IS no transfer of information from previous prisoners in any way.