Ok, I knitted this teddy:
http://www.coats.de/PDF/smc_gestrickter_teddy_engl.pdf
for a friend and when using the patter had some problems, I sorted them out so I am posting this for anyone else who wants to use the pattern.
When you come to shaping the head, it tells you:
Over the last 2 stitches on needle 2 and the first 2 stitches on needle 3 knit 2 rounds.
The pattern shouldn’t say rounds, instead it should say rows. Continue in rows until the pattern says continue over all stitches in garter stitch.
I hope this helps anyone wanting to use this pattern. :XX: 
:XY: