Andersox is getting gaps where she picks up the stitches with Shag. This scarf can look quite different in different yarns, but I don't think I've got any gaps so far.
The only Shag I still have on the premises is one that I knitted with Noro Silk Garden and I've photographed both sides of a flap.
Lynne suggests in the book that you can use a smaller needle to pick up the stitches: I didn't find this necessary but it could be handy.
Sometimes when you knit the first row it can look a bit stretched, but once you've moved on that closes up, and once you're finished altogether the flaps tend to relax anyway, so it should be all right.
If you still have gaps, Andersox, can you post some photos?
For those of you who are new to Knitting New Scarves, the pattern for Shag is available free here. It's the most irresistible scarf I've knitted since the curly wurly of a couple of years ago: I've knitted four already.