I got some help from the mahoganystylist.com and paco.
I went back to the muslin and lowered the waist by 1/2 inch,repositioned the darts, removed 1-2 inches of fullness from the side seam and made minor changes to the shoulder seam.
I cut out a second jacket and the fit was much better. The sleeve that came with the pattern had 4-5 inches of ease and the upper arm measurement was too small.
I decided to try my hand at drafting a sleeve using my measurements. I use http://www.vintagesewing.info/ and books from my sewing library. In the end I use most of the info from vintage sewing..
I cannot find the jacket. I looked everywhere. Tomorrow I will cut and sew another jacket so that I can fit the sleeves.
P.S. ignore the dates on the photos. I did not set the date and time on my camera.
I am going to work on this jacket until I get it right and it become a TNT pattern for me.
I started working on the jacket the end of December and I have refered to my sewing library for guidance and some direction because the last time I sewed a jacket was in the late 70's or early 80's when anything I sewed fit with little or no effort. Now... I will not go there.
Here is a list of the books I read:
1. The Art of Sewing ( Basic Tailoring, Classic Techniques,The Custom Look. Separates That Travel)
2. The Complete Book of Tailoring by Adele Margolis
3. Fit for Real People and Jacket for Real People by Palmer Pletsh
Hopefully, I will be able to complete a wearable muslin soon.....