I am currently knitting a preemie baby hat.
Here is the pattern. I will post it when I am done!!
Pattern: http://www.carewear.org/patterns/knit/knit.cfm?pid=_p10_basic_knit_hat.cfm
Materials:
Needles: Size US 5
Yarn: Bernat Baby Jacquard
Try the pattern yourself, it also has sizes for up to a Child! Also, there are several variations you can do, not just the ones listed! I changed the pattern to be ALL Garter Stitch, because I feel the rib is too advanced for me. I am going to try a all st st hat next.
Enjoy!