After taking a look at the fit I took the bodice off the waistband and took up another half inch of fabric for a total of 1 inch seam allowance. I've yet had the time to put it back on and test the fit but either way I think it should be fine. I'm a little less satisfied with the front of the bodice at the front side seam. It has slightly too much wiggle room.
I'm using some scrap fabric for lining the waistband, the boning and the hem. I've just whip stitched it all in place. I can't remember if dresses during the 1840's would have been finished inside or not. There was simply too much fraying for my personal taste to not try and clean it up a bit.
Last but not least my hem. The scrap fabric will hopefully keep the bottom inside clean and can be replaced at a later time if it becomes too tatty. I enjoy doing the finishing work by hand. It makes the evening hours pass peacefully.