I started the first Wallaby sleeve last night. It is more or less visible in the picture, coming in from the left. I put those pieces of cardboard in the kangaroo pouch to demonstrate that it is really there.
I began the sleeve using the two-circular-needle method of knitting small numbers of stitches in the round. I've done it before, but last night I got myself (and the knitting) in a twist, and happily reverted -- after a bit of ripping out -- to using sock needles.
I have found ever since I knit sweaters for my children when they really were children, that knitting patterns always make children's sleeves too long. I said this to my sister-in-law many decades ago, and she said that her children had arms of normal length. But I think I'm right, and it's not that my children and now grandchildren have unusually stumpy arms. Look at patterns for children's sweaters and notice how often the youthful model is wearing the sleeves rolled up.
Fine in a studio picture, a real nuisance in real life, especially for a small child, whereas an inch or so of bare wrist never did anyone any harm. The Wallaby pattern specifies 8" for the sleeves of the smallest size. Vicky Square's "Knitting Great Classics" shows a full 10 1/2" on the Child, Small size. I'll do about 7" I think. We'll see when we get there.