Here's the link to my blog and the video's Diana Sullivan did for the hat:
http://tommachineknittingguy.blogspot.com/2011/11/my-quick-knit-circular-troop-cap.html
Tom's Circular No Seam Hat
Materials: 4-ply worsted yarn, 2 ounces
Machine: 8 mm bulky with ribber
Set racking to H3
Set machine to plain knitting
Main bed - needles 17L to 17R
Ribber - needles 17L to 16R
With tension 0 knit zigzag row, hang comb and weights
Set machine for circular, T6 on both carriages.
With waste yarn, knit about 20 rows (10 rounds). Mark the first stitch on the main bed, which will help you fold the hem without twisting the knitting.
Knit 2 rows (1 round) with ravel cord.
Row counter to 000
Change to main yarn and knit 50 rows, if adding contrasting stripes do so here then continue to row 88 to fold hem.
Remove weights and comb, and open up space between beds to furthest "click"
Bring up the waste yarn you knitted first from the bottom through the center. Hang the stitches from the first row of the main color on the main bed, beginning at the end where you put a marker. Hang all the main bed stitches, then all the ribber stitches - a second loop on every needle.
Hang weights, using weight hangers (I used 4 large weights! You need lots of weight on circular knitting.)
RC000
Knit circular to row 68. Lengthen or shorten here, if necessary.
Tighten carriages one whole number.
On each bed, do a full-fashioned decrease with triple transfer tool (decreasing 8 stitches per round). Tom's tip: do one row's decrease and put those 3 needles on each end in hold before knitting the row.
Do the same for the next three rounds, decrease tension one full number (one click per round). After four rounds of decreasing, which is 8 rows on the row counter, you will have decreased 32 stitches, which makes a nice taper to the crown.
Knit 6 rounds (12 rows) waste yarn and release from machine. Remove waste yarn in cuff of hat and close top by gathering up stitches. Hide ends.
Look, no seams! You're finished!
