Spatts, I hate to tell you this but I am pretty sure that that was the right fit. On mine I can only get my arms about that far in. I've found the way to get into them is to put in both arms then put your head thru and then have someone pull it on. It looks like your sleeves are fitted like mine, only problem is mine is supposed to be a meet fit. I think they just sent me a comp fit.
It's probably good you sent it back though, because if it's that tight it will take a ton to lock out.
Good luck with your shirt and let me know if you need help. Later