Socks: Yarn, Guage, Needle Question -

[Sharly]

First time posting

I began to knit December 7th and taught myself from a book. So far I've completed several objects, scarves, hats and wash cloths. Technically, I feel somewhat confident - but when it comes to choosing yarn, I'm easily overwhelmed!

Now I've decided I want to make socks. I have a pattern which calls for Merino Wool and size 3 dpns. I purchased Paton's Classic Wool along with the needles suggested. However, when I knit my guage swatch, instead of getting 4 inches, it comes out closer to 6. Now I'm having second thoughts. I'm not sure the yarn is what I need. Is there a chance it is the wrong weight? I know I should decrease the needle size and try again, but with that difference, is one needle size decrease enough? Also, because this yarn isn't machine washable, should I put it aside for a felting project (I've been wanting to try, anyway) and start over with something different, and if so, what? Or, should I Cowgirl up and give the smaller needles a try? (And, forever handwash the socks...)

Any suggetsions? I really want to try socks!