I'm going to be knitting up some Peace Fleece for a pair of Soaker Pants (diaper cover pants.) They'll be knit in the round and my guage will be 5-7 rows per inch (don't know exactlt at the moment because my journal's not handy...) Anyhow, they'll be worked up with 1 inch color stripes (just 2 colors.) Do you think I'll be OK cvarrying the yarn, or should I weave and cut for each color change?

I would carry it. Peace Fleece is the type of yarn that will felt to itself, so you shouldn't have too many loops to worry about. Bring the yarn you're using under the hanging one to keep it close to the side.