Another thing that is suspect is the productyou used to stabilize the tee-shirts. Since it is directly under the knitted fabric it could have reacted chemically with the 505 spray and entrapped the paper. I think a soak in warm or hot water might help. You will not have shrinkage from the tee-shirts but might have some from the batting. I hope some of the above advice will help. That is too much work to abandon.