11/27/14: I have been wearing this for the past 2 years and finally decided to add a front pocket to make it perfect. This hoodie is very warm and has been through the wash multiple times. You can see by the pictures with the pocket that it has held up well!

Front Pocket
CO 34 stitches, knit to 5 inches (for me this was 21 rows) slipping last stitch of each row purlwise and placed markers at each side of 21st row.
Begin decreases as follows.
Row 22: k1, ssk, k to last 3 sts, k2tog, slip last stitch
Row 23: purl, slip last stitch
Row 24: k1, ssk, k to last 3 sts, k2tog, slip last stitch
Row 25: purl, slip last stitch
Row 26: knit, slip last stitch
Row 27: purl
Row 28: k1, ssk, k to last 3 sts, k2tog, slip last stitch
Row 29: purl
Row 30: knit
Row 31: purl
Row 32: k1, ssk, k to last 3 sts, k2tog, slip last stitch
Row 33: purl
Row 34: knit
Row 35: purl
Row 36: k1, ssk, k to last 3 sts, k2tog, slip last stitch
Continue in st st with remaining 24 stitches until pocket is tall enough to comfortably fit hands through opening in top half. For me this was 42 rows.
BO all stitches.
Sew pocket onto front of hoodie.

Changes in the arms.
One increase at both ends of 2nd RS row. Again at 6th RS row and then increase every 12 rows from then on. Result, much tighter sleeve.
If knit again, I would increase every 6 rows instead to give the shoulder/armpit greater ease.
I also increased the arm length from 18 inches to 23.

Changes to hood front.
Picked up 75 stitches. Knit 10 rows of K1P1 rib followed with 5 rows St. st. BO in purl.