I am using Stitch Nation "Full O Sheep" Thyme in these pictures. As I crocheted I remembered that heavy worsted weight yarns are better for the pattern. Using a light worsted weight yarn will give you a tiny hat. The hat will stretch a little with wear, but a heavy worsted weight yarn will give you a normal size.
These edits refer to Row 7, where the shell pattern begins. This seems to be the trouble spot, understandably so, as I found some errors while I was working.
Errata is in purple.
row 7: ch 3, *skip 3 sc, shell into next sc, ch 1, skip 3 sc, dc into next sc, 2 dc into next sc, dc into next sc, dc into next sc, ch 1* Repeat from * to * 3 times, skip 3 sc, shell into next sc, skip 3 sc, 1 dc into next 4 dc, join with a slip stitch into the second ch of the ch 3 made at beginning of round. Add a place marker to the ch 3 at the end of the round to keep track of the beginning of each round.
The following pictures give you a visual of how it looks as you work up row 7 properly.
First picture shows what it looks like before you start row 7 -- ie the circle is finished. You should count 55 stitches before proceeding.
The next picture shows the chain-3 at the start of the round. "carekelly" on Ravelry pointed out that "turning-chain" doesn't apply, as we are working in the round (not going back in the opposite direction.)
The following picture shows skipping three single crochet, then making the shell into the fourth stitch. (Shell= 3 dc, ch 2, 3 dc) If you look at the previous single crochet row you can count the three little loops before the shell.
The image below shows the next ch 1, skip 3 sc, 1 dc into next sc, 2 dc into next sc, 1 dc in next 2 sc. The blue numbers show the 5 dc, and how dc 2 and 3 go into 1 stitch/sc (increase). The little blue loop at the end is to show the ch 1 you make after the 5 dc.Now you've finished the first the first * to *, Repeat 3 times! not 4, as you won't have enough room.
The next two pictures show making the last shell, ch 1, skip 3 sc, 1 dc in next four dc, then making a slip stitch into the beginning 3 chain.
Row 7 done! I hope this clears things up.
Please comment here or on Ravelry with any more questions. I will do my best to change the pattern and/or make another tutorial. I am currently a student, a volunteer teaching assistant and yoga instructor. It may take a little while to find a chunk of time with good lighting for taking pictures or going over things carefully.
Thanks for looking.