I found the hat pattern on verypink.com It is a cute hat called Downton Hat, which comes from the site called http://knitsofacto.blogspot.com.au/ I stuck to the pattern on this one, not knowing what to expect. At this point it is all going well but I did have to change to longer circular needles to be able to work it in the round. You can actually work it all on circulars but you can do the basic block on straight needles and then change.
Here is the video from Staci:
Will keep you posted how it goes