T-Shirt Re-Knitting

I'm on this "thrifty" roll where, not only am I working through the "stash," but I'm unknitting and reknitting somewhat sad projects into more fabulous stuff. Well, in my mind, the finished product will be more fabulous. Although, come to think of it, this project has been in a bag for 5 years...
At one point, every week, my girlfriends and I would knit around their fireplace, huddled up around the TV, and watch Sex in the City together. In one episode, the Carrie and her cohorts are debriefing over eggs—about their sexcapades, and various relationship issues. Carrie is wearing this excellent, drapey, airily knit T-shirt.
It was fitted, snug, and had a boat neck, and bell sleeves. Simple to knit, really: I embarked on the project from what I remembered about the T. A little shaping, and some increases around the wrists—no problem.

I used this sock yarn combined with a fairyish glittery yarn to weigh the springy sock yarn down. It bounced up without it! 
Come on, do we really need an excuse for glitter?
I did wear the thing at least once—and wow, was it Super Frumpy! The garment looks gorgeous flat, and maybe on a flat, reed-like model person who eats once a week. On me, a 5'4" somewhat curvy person, I looked thick and as though I might be trying to hide in a bit of fluff.
I know now gauge can be somewhat elusive when knitting on circulars. So the thing was huge and floaty...Ok, back to math equations, but somehow it just got stuffed into a paper bag for another day. 
Now, as part of my fiendish project finishing fetish, I'm resurrecting it—I do love the way it looks flat. Since I never completely unraveled the thing, at least I can use it to re-measure and gauge it properly. 

I'm going to try for a "more snug" fit and see how it goes... I hate wasting gorgeous yarn. And I have tenacity, even 5 years later.