As requested I am posting what I have done so far on lace panel 1, before I rip it out and start over. I don't see any reason why this dress can't be knit in the round! I know how to seam but don't like to do it. So, here I go again. :o) Here is the lace dress in question, from the Summer IK.
And here is what I've knitted so far. (My niece likes yellow.)
You see all those seams? NO WAY! There is a BETTER way! You'll see.