Here is a fun quick project just in time for the holidays. I saw a similar hat and decided to make it up myself. Help yourself to the pattern, click here to download the PDF file.

 Another Option: Knit it Big, Felt it, and Shape it
 



For a fun alternate, knit it in the large size, making each stripe a few rows longer than specified in the pattern. (if you wear a large, then add about 10-20 stitches to make it big) Then felt it. Here is a different colorway, felted and blocked (below). The rolled edge becomes a nifty little folded brim. After knitting the hat, I crocheted a simple chain and felted it too. After blocking, sew on the felted separate chain at the top of the hat (shown in orange.)

January 2008 Update
I made this pattern available on Ravelry and it was featured in an article for the Winter edition of Spindle and Wheel. Folks have been doing fun things with it. 

See what Ari did!
Ari (see her blog) modified the pattern for small children (changing the edging to ribbing to grow with the kids). She made them to send to charity. Wonderful!
  
And, she added socks too!