Since I've made so many hats lately, and all of the same design, I should codify the directions. For the perfect simple hat, cast on 120 stitches in worsted weight yarn on size 8 needles. Knit 1x1 rib for 8 inches. Place a stitch marker every 20 stitches. In each subsequent round, k2tog or p2tog before each stitch marker, depending on whether a knit stitch or a purl stitch presents itself. Continue decreasing in this manner until only 2 stitches remain between markers. Break yarn off, leaving an 8 inch tail, thread through 12 remaining stitches, pull tight, and weave in ends.
I'm in a hurry today-- I'll try to talk about variations tomorrow.