Dude

I think you need to definitly get some reference for this then it will look even better once its finished.

As for your global stitch problem, I would say that the number of cv's on the arm are different from the amount you are attaching on the torso so when you apply the stitch Maya has to work out what it thinks is the best way to join the surfaces. I'm not an expert at nurbs but this would make sense to me looking at it.
Hope this helps

Jango