Thanks for your help. I am knitting with Debbie Bliss Cathay, which seems to have quite a bit of give. I think I will skip the short rows, in case it ends up too slouchy.
I found your post earlier in the year about the armhole...I am there right now. What did you end up doing? Casting on an extra stitch and k2tog with the first stitch of the body? Did that work for you?