I am making a very simple hat in green with a large yellow "O" on it. What is the best way to switch between the green and yellow? What I am doing now is having two skeins attached and one stitch before I have to switch i catch the end of the next color in the last stitch of the color I am currently using, then I proceed with the new color and repeat as necessary. This leaves long strings stretching across the back of the cloth.
If you're knitting in the round this is the method I use to knit fair isle. The problem with knitting in the round is that you usually carry the yarn all the way around and if you're doing a single O then you might not want to. http://www.philosopherswool.com/Page...andedvideo.htm
If you're knitting flat so you'll seam then you'd use fair isle method. There's a video under advanced techniques on the tab at the top of the page.
You can avoid the long loops or floats across the back of the knitting by "catching" the carried yarn every 4 sts or so. You do that in a way similar to the way you change colors. Here's a video to show it.