Was the PeaPod on top draping onto your body---or was there any air gap? If so you must fix that.
Getting rid of the gap between the hammock and the bottom of the peapod is easy fix too--just take the ends of the peapod further away from the hammock body, like maybe beyond the gathered ends before cinching the ends of the peapod down.....this will also reduce the air space on the ends your body must heat.
Excess clothing in the ends is smart to further reduce heating volumes.
That sleeping bag extended (once zipper is removed and velcro added) does overlap on each side of the velcro closure much like a draft tube...but at your side I dont think you need the extra width it provides.
Here is my vid on my pod system:
http://www.youtube.com/watch?v=ZO_haqJkVAE
Probably wont help too much to watch but cant hurt.