Ok so this is a cool, simple hat but there are a few problems with the original pattern.
The hat is way too big!!!...as you can see from these pictures. Yes, the pattern says to work stockinette stitch for 3 1/2 inches but if you work out the full VW pattern, it comes to about 5 inches. I realized this after I had already made half the logo. Most people have the same size head (roughly) and this is way too big for the average head. Therefore, you need to make the VW smaller - about half as large. It's too big for my lovely boyfriend as you can see in the third picture, even though I always thought he had a bigger head.
I used a mattress stitch (see the demo videos section) to close up the back and it worked out really well and made an invisible seam.
I also used size 6 needles instead of size 7, but I knit relatively loosely.
Oh yeah and if you're wondering why the V and W are connected it is because my boyfriend told me to do it but then after I finished the hat he changed his mind
Anyway, I think this hat is salvageable. I can either use a piece of plastic and make a brim out of the extra material, or just give it to someone with a big ole head.