I just received my Prana cardigan in grey and it is absolutely beautiful.  I am 5'2" 122lbs with short arms and legs.  The length of the sleeves are perfect, I thought they may be a little long but they are not.  If you are a petite size definitely go with the XS.  I want the cream one too but do not want to pay $100, so I will wait and see if the price goes down.  Anyway, highly, highly, recommend this cardigan you will not be disappointed.  BTW they grey is a lovely color not too light and not too dark, just perfect.