I figured out how to get the capelet a bit smaller and still use an N hook. Use smaller stitches. I've also changed the pattern up enough that I'm going to post it on my pattern blog in the morning when I can take a picture of the capelet I just finished.
Using the slightly smaller stitches at the beginning brought the neck in so it fits great and doesn't stretch out so it slides off one shoulder. I hope you guys like it as much as I do. I'll add a picture tomorrow, it's bedtime for me right now, I just thought I'd put this up before I head off to bed, I just started my monthly this morning and I feel really icky right now.