By writing numbers $1$ to $2009$ in binary form: $$1, 10, 11, 100, 101, 110, 111, 1000,1001 \ldots, 11111011001$$
the procedure should be clearer.
The first round, numbers of last bit of $1$ are removed. The second round, numbers of the second last bit of $1$ are removed. Keep doing this, the last remaining number is the number in the form $100\ldots000_2$ between $1$ and $2009_{10}$ with the longest string of $0$'s, or $1024_{10}$.