I am having trouble understanding the cutting out part of this pattern. I am doing view D, looking at the Cutting Layouts. I understand most of it, but pattern piece 2 has a star beside it and in the notes it says the star means: "Cut out all pieces except pieces that extend beyond folded fabric, then open out fabric and on RIGHT side of fabric, cut in positions as shown."

1. Am I supposed to be cutting on the wrong side of the fabric with all the other pieces to begin with?
2. Why is piece 2 in a different place in the 2nd picture?
3. where is all this extra fabric coming from? In the first picture, almost all of the fabric is covered by pattern pieces except for a thin strip above 14.
4. The line which goes through piece 2 in the 2nd picture -- is that the edge of the fabric? I see that there are two folds...

I haven't started cutting anything yet, because I'm afraid I'm not seeing it right.

Made this sleeveless shirt based on this one (which includes a tutorial on page 2): http://www.craftster.org/forum/index.php?topic=246237.10

It's not perfect, but it has been a learning experience at least, and I'm satisfied with how it turned out. I'm going to add a coral/pink ribbon under the bust, but I have to get some matching thread. 

This first picture makes it look a little weird, but it's the way I'm standing. Also, sorry for any blurriness. (DH took the pics  )

Front


Back


Closeup of button (which I found in my stash and thought looked perfect here!)

I bought some fabric a couple of weeks ago and it's been sitting around waiting for me to do something with it. I've looked through posts on here and patterns elsewhere for ideas. I want to make a top, but I can't find any type of style I like. The material has kind of a silky feeling but is a little thin, so I'll have to put a lining in it. Here's what it looks like:

plain wooden picture frames from Hobby Lobby(tm): $1.47 each
pictures printed at wal-mart: $.19 each
hand-painted picture frames for my bridesmaids: ......you know.






Used acrylic paints, rhinestones, and buttons.