Here are some photos of my Dollar and a Half Cardigan, the BACK and the RIGHT FRONT, knit the way the photo shows.
Notice the slight puckering that still remains on the panels of the BACK.
I have stretched it as far as possible, placed a wet towel on it for a day...then last night, I re-soaked the puckery bottom edges of the rev st st panel, let sit til dry...took this photo...and then I used my mister to re-soak those puckery edges again. I swear, I will remove this puckering!

My next step will be to use not too hot water in my mister...and mist the puckers with "hot" water to shrink out those puckers...OR, maybe hold my steam iron over the puckery edges, and work out the puckers with my fingers.
When you get to the first transition (lace panel to rev st st panel)...switch to your smaller needle on Row 7 of the lace panel...it will actually be a Row 12...then start your first row of rev st st and with the smaller needle.
I didn't switch to my smaller needle until Row 1 of rev st st...and I now regret that.
Also, I wish I had sized down two sizes...US9 for the lace panel, US7 for the rev st st.
Well, you are using a different yarn, so check to see how it performs. If you size down by one...if you see no puckering, you are good to go. If you still see quit a bit of puckering, size down another needle size for the rev st st. It is better to tinker with it now...and get it right...than to have to fiddle with this "blocking and shrinking the puckers" later on!
Also, since I am just 5' tall, and have shorter arms than the lady in the photo, I am going to have to shorten the sleeves. Therefore, I am going to do my sleeves as follows: I will do the panel sequences as shown just on the forearm...then, I will do solid lace pattern the rest of the way up. The lace pattern can be stopped short before the armhole cast offs. The panels sequences won't allow that. My sleeves may have one or two rev st st 'stripes' but no more. I think that will look ok. Or maybe, no rev st st panels at all! Just the lace pattern. I will have to think that one through.
One rev st st panel will look like a bracelet...well, when I get there, I will take a photo and see what y'all think! Get a vote.
Yes, I think if we get 3 of us that are knitting this cardigan...we should put this in KAL.
Are there 3 of us yet??? I think so! Dustinac, SnugglebugMom and me!
Whaddya think, Mod Squad? Do we qualify to be tossed into KAL? If so, toss us now...before we get more knitters who will get lost in the GK mix!