The 2nd muslin is complete and I'm not completely happy with it either. I made a couple of mistakes with the armhole. I actually second guessed the alteration that I made to the pattern and decided that I hadn't removed enough from the armhole and removed another 1/4" all the way around. This made the armhole too big. I also think that I stretched the armhole when I was putting the binding on.
I still need a little more width across the front. So, I have altered my pattern one more time adding 1" which will result in an additional 2" of ease. I also made a slight modification to the armhole. We'll see how the next muslin goes. I dug through the stash and found another cotton fabric that will make a good muslin. It's a mini gingham. Hopefully, it will turn out ok. I will admit at this point I'm starting to get discouraged.