Gwen mentioned that she had trouble with the increases for the doube-knit bear's head. Sympathizing, I'm writing out what I did instead:

Separate the double-knit stitches onto 2 needles by slipping the first stitch onto a 2nd needle and the next onto a 3rd across the row. This was rather difficult, since one basically has to balance three needles at one time. (Might be good if you have a helper here.) Knit around once, dividing the stitches onto 3 or 4 needles, whatever you fancy. Increase for the head by *k2, inc 1* around. Decide and mark somehow the stitch that is the center front where you want the center of the bear's nose to be and the stitches on either side of the center st that will be the "edges" of the nose. (I think I used 5 sts on either side of the center (10 in all) as nose sts.) Knit around for a couple of rounds, then make nose:

k to the st marked as the left edge of nose (as you're looking at him, not from the bear's point of view), wrap, turn and purl back to the other edge sts, wrap, turn and *knit to 1 st before the left edge st, wrap, turn, purl to 1 st before the marker, wrap & turn* Repeat * to * until you're at the center front stitch then reverse the process, adding one stitch on either side until you're back to those edge stitches.

Then knit around until his head is as tall as it should be, decrease a bit (if you want him to have a round head) and then pull yarn through left over stitches, stuff 'im and close off. I crocheted him some ears. I'm not an actual crocheter, so I couldn't begin to describe what I did. :o)