Analysis: According to the relationship between the number of people around and the number of people on each side:
Number of people on each side = number of people around ÷4+ 1, and the number of people on each side of the outermost layer of this square can be found, then the total number of people queuing in this square can be found.
Solution: (1) The number of people on each side of the outermost square is 20÷4+ 1=5+ 1=6 (people).
(2) The number of students in the whole phalanx * * *: 6×6=36 (people)
A: There are 6 people on each side of the outermost square, and there are 36 people in this square.