Sooty is your average glove puppet. I'd guess that the head is just a stuffed ball of something, which is then sewn to a tube of fabric (the body) which has had arms attached.
It's pretty complicated, so a video or tutorial might not be the best thing to look for. My guess is you'd be better off finding a book (someone else here may have a good suggestion, but I seem to recall David Currell's "Puppets and Puppet Theatre" has some info on making something like that).
Also, Sooty is a well-known UK puppet, so there may be some info out there on UK-based puppet sites (
www.puppeteersuk.com for instance) on how they were made.