The yarn is Caron Simply Soft Eco. I actually thought I was going to run out as I had used part of the skein for other projects, but it turned out that I still have enough left to incorporate into another hat. It is soft and washable which are two of my favorite attributes. It didn't hurt that I used my bamboo needles to knit with either. They are straight size 7s so I don't use them much at all.
The picture is horrible, but the webcam is all I have right this second.
11/3/10-better pictures, thanks to my four-year-old. Good Job little one!