OK - so some of you know I'm knitting a "hoodie" ... I've now completed the back, front and both sleeves.

So my last challenge is "the hood".

Patterns says:

Cast on 17 stitches.
Shape Right Side-
1st row - P3, knit to end. (easy)
2nd row - Purl to last 3 sts, K3. (easy)
3rd row - Sl 1, P2, knit to last st, inc in last st ... (18 sts).
Rep last 2 rows until there are 36 sts.

OK - seem easy enough but the slip stick is bugging me - can some one tell me if I'm doing this wrong?

1) What I do is simply "slip" it from the left needle to the right one without actually making a stitch. seems to leave a feathery edge so I've stopped.

2) when you increase into a stitch, what's the best way to do this?

eternal thanks from David

The hoodie has really progressed. Excellant.
THis is a video (http://www.youtube.com/watch?v=SkzDZ6OjCU0) for slip the first stitch purlwise that shows you the chained edge that you get when you do so.
There's not really a best way to do the increase. It's more a matter of keeping track of your stitch number and your personal preference for increasing. In you case, since you're increasing in the last stitch, keeping track of stitch number won't be a problem. So it depends on the look that you want. Knit front and back, KFB, will work but my favorite is knit left loop, KLL, or knit right loop, KRL since they won't leave a little bar across the front. All these are demonstrated on the Increases page under Free Videos at the top of this page and all of them (and others) will work for you.
These are both great questions, btw.

Yep, that's what a slip stitch is - slip it from one needle to the other. It's going to be a little looser which is why I don't like to do them; I work the first stitch then pull the yarn a little and do the next stitch or two a little tighter. That leaves the edges nice and even. But they should all be the same, so if you started the hood by slipping, you should keep on doing it, it may look fine when you're done. Odd that it's just on row 3 though and not 1 and 2.

The pattern says to increase IN the last stitch and that would be a kfb. The other increases are done between stitches and don't use a stitch.