Well it's good to know I am not the only one having a problem with exxercise 3. I can play the first set up. Then I can do a few frets but like Mike not as clean as they should be. The pinky is my biggest problem. With this strech it wants (needs?) to touch the string below. If I don't play the pinky and just lift it a little I can play the other 3 fingers clearly. BTW, I took Griff's advice and tried different ways of holding the guitar and placing the fingers. For me I need to make sort of a slant with my fingers, the correct classical style just doesn't cut it.
Because you read this far let me give you a laugh. The first 2 nights I was doing the course I tried this "keep all the fingers in place" with the 1,2,3,4 etc. Damn that was hard, took me forever to get through the exercise etc. Then watching the DVD I noticed that Griff was actually lifting his fingers when he went from one string to another. Suddenly the exercise made sense. ;D