I had the same problem when I made that. I played with it a bit and tugged around at it... I tried not wrapping the last and first stitches as many times as the rest, not dropping that first stitch at all, tugging it all up into shape, etc. In the end, a gentle tug and pull on the stitches as you go is the only thing that seemed to work. And then I just weaved in that one extra long stitch at the end of the scarf when I was done. Once you wear it, it tends to stretch out and you can't really tell so much.