So, the shrug did fit and I am moving ahead with the project. This weekend, I trimmed and bound all the seams with bias tape and worked on the sleeves. Speaking of which, I realized that I was holding them (and trying to attach them!!) the wrong way, which was why they looked like they wouldn't fit. But I am back on the right course now.
I guess this is my inexperience rearing it's ugly head. In a year, I have learned a tremendous amount, but there is still a lot that is new and I am not always as patient as I should be.
Next steps: Hems and Trim