Adapting intarsia for circular knitting

I saw on the intarsia video that it’s possible to adapt intarsia for circular knitting. I saw something on Knitty Gritty the other day that caught my eye, and I’m trying to adapt it to a hat. They made a pillow from a cable pattern, but they used a different color for the background than the cabling. I’m trying to make some hats for a school fundraiser that will have the school colors in them, and I want to try to make a hat that’s knit in the round with a white background and blue cables. Does anyone know the trick to knitting intarsia in the round? This is my first experience with intarsia, and so far I’m failing miserably. The pattern said to cast on 4 stitches in one color, eight in the next, etc., but then when I knit my next row I’m just left with a bunch of little things that aren’t connected! I thought that I could figure it out on my own, but I think I’ll have to have help on this one. Also, I’m trying to do a stocking cap that’s knit in the round with our school’s name on it. There are eight stitches between some of the letters, so I don’t think I should carry the yarn that far. I tried putting the name on in duplicate stitch, but just wasn’t pleased with the results. Is there another method that I could use to knit the name into the hat? Thanks in advance for any help that you can give me, I’m stumped on this one!

The only way that I know of to knit intarsia in the round is to really knit it back and forth, but do something at the ends to connect it in the round. I think it’s along the lines of increasing at the end of one row and then knitting that together with the first stitch of the other row. I haven’t done it, and don’t know exactly how it’s done, but that’s probably what they did.

You can knit intarsia in the ‘regular’ round if the colors of both yarns are used in the motif, but that wouldn’t work for cables.

Maybe I’ll try to find a pattern for a stocking cap that’s knit flat.