I've made several of these. They're the most comfortable hats imaginable because of the cotton hem lining.
I'm not sure what your question is, but the process is simple.
You knit a couple of inches with cotton, as directed, then switch to wool for the rest of the hat.
When you're finished, you turn the cotton part to the inside and sew it in place. When you wear it, the only thing that touches your forehead is the soft, absorbent cotton. And you have a very attractive finished edge.
I like this idea so much I've been adding a cotton hem to all my hats.
Bea's directions are usually very clear and complete.
But if you run into any trouble, please ask again.
The only problem I've had is that the hats are fairly tall, (which helps to conserve heat) but I like mine to fit more closely at the top of the head. So I usually fudge the height by eliminating a couple of pattern rows.
BTW, I usually object to buying kits. But these are very fairly priced and you can choose any color combination you want. You're basically paying regular price for the Dale yarn, plus a bit for the pattern, which you can use many times with any appropriate yarn.