Hi Rambo's Mama!
I have the same exact problem!!!
I have a 8 pound yorkie and she's really long!!! I bought a carrier from petedge (the plaid/Burberry looking one) and have the same problem... my dog will go in it but it's a really tight fit and her head has to be out.
I too don't know what to do.
the bag sizes were probably the biggest i have yet seen. I'd like to find a carrier where she would fit comfortably even when her head is inside.