I saw a woman in Harris Teeter (grocery store) wearing a cute hat. I stalked her for a bit and decided to recapitulate it!

A modification has been made to the pattern. If you downloaded the pattern after Aug. 5 2009, you should be ok. If you downloaded the pattern before this date, please download the pattern again or note the change in the directions for the body of the hat (bottom of the first page).

It should now read:
Body: Switch to #7 16-inch circular needle if you are not using them already. Start knitting the body of the hat in Box Stitch until the hat measures 4 ½ inches from the beginning (cast-on edge). You can extend this to 5 inches if you want a roomier hat.