The tube size was fine. Tubes can stretch enough to accommodate a range of widths (even beyond the box label). The LBS guy was right. You need to be more careful with installing and inflating the tire. Blowouts are (almost) never the fault of the tube, but rather a problem with the tire seating. So remount the tire with a new tube. You should have a bit of air in the tube before you install the tire so that the tube holds its shape and stays out of trouble. Be sure that the tube is completely within the tire (not between tire and rim or bead and rim). After the tire is installed, inflate to about 25 psi. Now carefully check on both sides of the tire that the bead is seated evenly all the way around. If one part is too high or too low, let out air and reseat it and try again. Once you are sure that the bead is seated properly, inflate to full pressure. If you have repeated problems with the same tire, the bead may be damaged and the tire need replacement. But chances are that installing more carefully is all that's needed. Good luck.
Oil is good, grease is better.
2007 Peter Mooney w/S&S couplers/Terry Butterfly
1993 Bridgestone MB-3/Avocet O2 Air 40W
1980 Columbus Frame with 1970 Campy parts
1954 Raleigh 3-speed/Brooks B72