I finished the first 15 set-up rows this afternoon. The blue/white yarn on top is waste yarn that I used to cast on my initial stitches. That will be taken off, I just didn't get to it yet. The two parts with "holes (or yarnovers)" are the beginning of the sleeves.
So far I'm liking knitting this...especially since I can "try it on" as I'm knitting. I'm absolutely loving the color of the yarn (Blue Moon Fibers' Woobu, colorway Spinel) too....a gorgeous blue-green.
Now I'm off to work on the applique that I was supposed to have done earlier today.