Joy, please check for me to see if your 1" test square isn't just a little shy of a full inch.
We were having some scaling issues with this year's BOM, and I know that Sue has corrected all of the paper pieced foundations for the BOM, but apparently she didn't adjust the little house practice page. Unless you need to print the house out at 4-1/2", just consider it a practice page. The rest will scale correctly if you follow Sue's directions and select "none" or "no scaling" before you print it out.
BTW....This is a great example of why you need to be accurate with your measuring, your cutting, your sewing and your pressing. See how quickly that little bit gets magnified! Imagine how much off a whole quilt would be if every block was off just that 1/16th of a inch!!