I have done one bear for them so far and plan on doing another.
I used a wool acrylic for the trousers and scrylic for the sweater and 'fur'. The 'fur' yarn was a great novelty yarn which had little twists of yarn comming off a main thread so when it knitted up it looked just like teddy bear fur.
Its such a lovely project. i plan on doing another one once i have finished these socks.