That's how you should do it, but having only 2 sts on each of 4 needles is really hard to get started. I suggest putting 4 sts on 2 needles and use a 3rd to knit with for a few rounds. After you've increased several sts and have some rounds knit, then you can add the other needles and rearrange the sts the way they should be.
This is a very simple hat pattern. It's pretty much just a series of knits and purls. Othen than that, there's k2tog. If you don't know how to do that stitch, it can be found under the videos section here on knittinghelp. Hope this helps! And of course if you have any more questions, feel free to ask. http://www.ravelry.com/patterns/library/hat-shaped-hat