Ok so I know I said I bound off the other one halfway through and tried to hand felt it just to see how it would turn out. Well last night I didnt get much results with the hand felting (with the exception of scalded hands, and the fabric just shrinking a teensy bit) well today I looked online at my LYS website at this specific yarn and turns out they give INSTRUCTIONS on how to felt it in a German washing machine (front-loader) so I stuck it in the washing machine at the laundromat at 60°C and it came out lookin pretty good! The stitches are still visible but you can tell the fabric shrunk up and tightened up quite a bit! So I think my problem was I was using needles that were too small, I was using 7.00mm and I think I'm going to upgrade to 8.00mm and see if that helps with the felting process and the size issue. I seriously think it was just a matter of the stitches were too small and werent able to rub together in the wash and therefore not able to blend together....So onward to attempt number 2!