I have 3 babies (family and friends) due between May and August of this year, so I am working on several little hats.
I just finished this seed stitch had for a nephew, and as some of you may have seen in the Pattern forum, am working on a new pattern for one of the two baby girls.
http://www.kodymayknits.com/2006_12_05_archive.html
In a dusty pink color. I may do the second hat in brown and pink or a pale green.
I love seeing what you guys are working on! 
That is cute. It looks so soft and warm. I wish I could get the round knitting down but sadly not yet.
Round knitting is just flat knitting where you never turn your work.
That is a really cute hat! I have a pattern for a cute little double breasted baby sweater that has some seed stitch on it, and this hat would be the perfect complement to it! Here’s a pic of the sweater:
Nothin’ nicer than receiving handknit hats for a new baby!
[FONT=Arial Black][SIZE=3][COLOR=RoyalBlue]Adorable![/COLOR][/SIZE][/FONT] 
Love the hat! and you’re right - it’s the perfect companion to that adorable sweater!!