Pins & Needles in Arm in morning when I wake up?

Andy, relax and stop worrying! You are bound to be right that you are lying on your arm - and everyone gets dead legs from time to time if they sit in one position too long. As for poor circulation, your grandad lost a toe, undoubtedly at an advanced age. Hands and arms are rarely affected in the same way. Furthermore, I'll bet your grandad either had diabetes or was a smoker.