Baby Sweater Horrors!

See that lovely photo in the pattern book, see all that lovely stockinette stitch, see a 75% completed baby sweater?

If I do not figure out how the sleeves fit, tomorrow you will see this project frogged!!!
Ok, here is the deal, I followed the pattern with no deviations, I blocked all the pieces exactly to the schematic. I joined the shoulder seams. I picked up the edge, and neck bands, I garter stitched.

Everything was going fine, until.......the sleeves!
There is no possible way to fit them in the space allowed, it appears to me that the sleeves should be at least 3" wider. Or, do I attach the top of the side seam to the bottom of the sleeve, yikes, that just doesn't seem correct.

Will have to call in for re enforcement...the saga will continue.