ahh chad, yes the arm doesnt attach very well, ive had this same problem when i started my character, i ened up starting again witch isnt the best advice heh, but i had the same problem with the griffon too, its hard to get that front arm to attach, right now it looks like it just sinks into the skin, u have to have the muslces from the chest and sholders form into the arm connection, u really ahve to get under the skin and make the muscles work for u, take a look at how certain animals are, like horses, lions
humans anything, ull get some ideas. try modeling his sholder blades figure out where tehy are and go from there, gl 
peace