Here's my newest post http://theyarnyogi.com/2012/07/02/shrug-faqs/:

The number one question I get about my shrugs is, “How do you put it on?” I remember my first shrug. It was a free vintage pattern for a bedjacket shrug from the ’50′s or ’40;s. I followed the pattern, completed it and said, “Whaaaat?” It was just a folded rectangle of crochet! How can this be worn? This is the reply I have been sending to my buyers who have asked:

After the shrug has been completed, hold it so the fold is on top and the open ends are on the bottom. Open the bottom, slide your arms in the armholes and, Ta Daaaa! It magically transforms into a cardigan that looks like a shawl with sleeves! Once its on, you can adjust it by folding the collar back and moving the shrug across your shoulders so that its even.

Shrugs are very customizable. I always design a pattern to fit me (I’m short with boobage) so here is how you can easily customize any of my shrug patterns to fit your size:
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Before you seam the sides, pin the sides up to the armholes. I like using those little claw hair clips. Try the shrug on. If it doesn’t seem to hang right, like it does in my photos, crochet some more rows and try it on again.

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You can also see how it looks folded with the crochet pattern horizontal or vertical.

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You can easily make the armholes smaller or larger by seaming up the sides higher or lower.

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You can add as many rows for the sleeves as you want. Or, don’t put any rows of stitches on the armholes at all!

I hope this helps clarify some things. I love getting questions and feedback on my patterns so keep it coming!

Please Excuse the formatting.