Wanda and Jan, fatoldladyinpjs posted a link to this video which showed me how to do German short rows: http://www.youtube.com/watch?v=KooKdm0YBbw
German short rows don't wrap before turning, resulting in a neater, cleaner line. When I'd done the wrap and turn method, it looked ugly so I reworked it and it was a little better but the wraps still were so obvious. With the German method, the purl from the wrap was eliminated so less to show.
Charlotte, I started the short rows about 3" below the armhole bind off and before I did the neck opening. I did about 2" additional length. The rows ended to the side of the neck opening so one really didn't effect the other. That neck and no shaping would have ended up a mess of bunching and hanging weird on me.