Yes, that's the thing - what to do about the neck. I may just set this aside and go back to it after I'm a little more experienced.
I wish someone (the shop owner perhaps) had advised me better when I bought my pattern and yarn. As a beginner, I think a huge project of stockinette is not good for maintaining interest nor do you learn any new stitches. Somewhere they should have a list of projects, in order of skill progression. A lesson plan of a sorts. I thought that Knitting for Dummies would be like that, but it definitely is not. It seems all books jump from knit, knit, knit to something complicated. In the catalogs they have Easy, Intermediate, Advanced - but it seems to be describing the pattern rather than the whole project.
Got Amy's CD - it is a huge help.