Distressed as in the bottom hem and sleeve edges have little holes in them.  It's supposed to make it look worn, and it does.  Fortunately the shirt does not come with holes in the armpits :)

The fabric stretches a lot, but calling this regular fit is a stretch.  I ordered my usual size.  The sleeves and armholes fit fine.  And it's such a snug shirt, it looks like it's painted on.  I do not like loose shirts, and I am not exaggerating.  It's not tight, but there are no gaps at all between the shirt and the skin.  I'd recommend sizing up if you don't like such a close fit, but if you do that you'll get a shirt too big in the shoulders.

I bought this to wear while doing housework or working out.  Despite the hug-factor, I can move easily.  It doesn't bind.  The neck opening doesn't gag me; some t-shirts fit like turtlenecks.  I like it for yoga.  It's a lot less expensive than a "yoga top," but when I do inverted or forward bending poses, it doesn't flop down (up?) over my head.

It's really a comfortable, functional shirt.  Just beware if you're looking for something more modest.