Im slighty overweight, would an oversize tee-shirt dress suit me , or look absolutely awful?

Honestly, shapeless, structureless tee shirt dresses don't do anybody any favors. You might be tempted to wear items that don't have structure so they don't reveal a little extra chub, but they sort of gloss over everything and make even skinny girls look curveless and bigger than they really are. If you have a fairly feminine figure and carry your extra weight in the hips and thighs, you could probably pull off loose items (possibly with a skinny, subtle belt to cinch the waist in, or possibly just letting your hips do the work for you).

Otherwise, I would lean toward dresses that define your figure with a nice, wide waistband (not elastic!) or other elements that add structure, such as darting. If you do decide to roll with the tee shirt dress look, you could try layering on top of it a light jacket/cardigan that is no longer than waist length. Even if it's loose and flowy, it will visually define your figure.

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