Awesome! Jeez this forum is extremely, extremely helpful. I checked out Melonpool's response but I'll use it when I'm creating my Nicky Avenue Q replica in the upcoming months, for the project I'm working on right now, I'm not using a foam structure (except for the body... I'll use it then.. doh!)
I may need to take you up on that BlogTV demo later on, Shawn.
And as promised, here are some pictures!:

Top seam, I used the whipstitch.

Bottom seam, used the ladder stitch, my new preferred stitch

(Anyone know how to make that fleece that attaches

Ladder stitch..

Ladder stitch, again...

Whipstitch...

Inside out top seam, whipstitch.

Inside out bottom seam, ladder stitch!
Any advice/tips would be greatly appreciated!
(This is only like my third puppet and I know it's not the best Kermit D:)