Well here's how I read it - I try to keep away from FAQ, but there are enough rules in the RAW for this:
The ones he makes with his feet
In this example THREE of his eight attacks would have to be unarmed (as he's not using any monk special weapons). The SRD specifically says with monks, regarding unarmed attacks:
The 'no off-hand attack' section is meant to point out that whether you use your right, left, knee head or elbow - you do not take further penalties for unarmed attacks with those strikes . This does not mean that any/all weapons are never off hand - only unarmed. If you use a siangham in your off hand - even when flurrying - this is an off hand weapon.
So 1st level monk with flurry of blows should be able to make an off hand strike with a weapon and use the two flurry of blows strikes with his (insert body part). However remember you have to also use the FOB -2 penalty with the off hand attack penalty... And I'm guessing that Monk 1 dosn't have 2 weapon fighting
(edit)In essence you must count the unarmed strikes as primary weapons.
(edit) The negatives (assuming no feats to counter) would be -6/-6/-10 (Fob/Fob/light weapon)!!
Now he uses Flurry of Blows. This grants him one extra attack, but "when using flurry of blows", he can only attack with unarmed striked or special monk weapons. So which of the attacks can he make with a dagger?
The ones he makes with his feet

A monk’s attacks may be with either fist interchangeably or even from elbows, knees, and feet. This means that a monk may even make unarmed strikes with her hands full. There is no such thing as an off-hand attack for a monk striking unarmed.
The 'no off-hand attack' section is meant to point out that whether you use your right, left, knee head or elbow - you do not take further penalties for unarmed attacks with those strikes . This does not mean that any/all weapons are never off hand - only unarmed. If you use a siangham in your off hand - even when flurrying - this is an off hand weapon.
So 1st level monk with flurry of blows should be able to make an off hand strike with a weapon and use the two flurry of blows strikes with his (insert body part). However remember you have to also use the FOB -2 penalty with the off hand attack penalty... And I'm guessing that Monk 1 dosn't have 2 weapon fighting

(edit) The negatives (assuming no feats to counter) would be -6/-6/-10 (Fob/Fob/light weapon)!!
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