questions - gauge swatch and edging

Hi
I'm hoping someone can help clear up some confusion. I have an SK160 and am
now ready to make a sweater. But I have some questions.
I made a tension swatch follwoing the diretions in the naual and took the
measurements. The gauge is 28 st in 10 cm and 40 rows in 10 cm. But when I
use this to try and make a sleeve, the piece seems way too large. for the
size. Are there some tricks to doing this?
Second quesion I have concerns edging. If I use waste yarn and a ravel cord
to start, none of the instructions tell you how to finish off the piece one
the waste warn and ravel cord are removed. So do I transfer those back to
the needle bed and bind off? I guess I have the same question when using
the weaving metho d of cast on.
Thanks in advance.
Nanci