Instead of following the pattern and using provisional cast-on, I have a much simpler method for the lining. You can just knit it first and then continue on to the charted hat portion of the pattern.

1. Using your preference of stretchy cast-on, cast on 118 sts with #1 circular needle and MC.
2. Knit in stockinette stitch for 2.25”.
3. -- Knit 10, inc 1-- all around. This will bring you to the 128 sts you will need for the charted hat pattern.
4. Knit one row plain, switch to #3 needles (or those you need for gauge), then begin pattern (knit one round, purl one round, begin chart)

Using this method, you will have the same result, much quicker and easier, and no need to use a provisional cast-on to reserve stitches for later to knit the 2.25” lining you will tuck up and sew to the inside.

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If you choose to want to knit it like the pattern states, with a provisional cast-on, I suggest using Fleegle’s technique which will take you about 1 minute to cast on instead of about 30 for standard method. Plus, cast it on with a spare cable or your #1 needle’s cable and leave it intact while you knit so you won’t have to transfer stitches, simply join the yarn and knit the lining.
http://fleeglesblog.blogspot.com/2006/12/fleegles-totally...

• note on yarn amounts I ended up using less than one whole skein (400yds) of my Twisted Sock yarn to make both this hat, as well as the leopard print colorwork mitts for my daughter. I had probably about 3 yds leftover from that skein.

12/20/10~
Restarted this project again with my medium-weight fingering yarn. Gauge is looking good now! Dying some more nightshade color and will resume knitting when dry and wound.

11/24/10~
Got about halfway through the chart and tried it on my husbands head and it was too big. My gauge changed dramatically once working with the fair isle. Going to rip it out and try again on smaller needles. Even with a lining, it needs to have that negative ease.

11/21/10 ~
Just going over pattern details and choosing my yarn. Hopefully will swatch at some point today and then dye the yarn and get it prepped.