Yep, I swatched in the linen stitch, and I knitted about 8 or 10 rows or so. I definitely don't want to rip it out and start over though, I wanted this to be a quick project because my table is in dire need of placemats. I think I might just do a crochet border around it to make it wider.
It's possible you measured your gauge wrong originally or your gauge changed in the process of knitting. That's pretty common. Your gauge tends to react to how you are feeling..stressed it gets tighter, relaxed it gets looser.
That's what I thought too, but I measured my gauge twice on the swatch, and I've measured it once or twice on the bigger piece, and it's the same! I'm guessing it just "shrank" like Sue said. How annoying!