I have tried and tried but I can't seem to figure out those earflaps. I think I'm following the directions exactly, but either I don't get the beaded line between the hat and flaps, or the seed stitch doesn't work, or it gets messed up when I try to decrease. I've scrapped and done every combo I can figure out, but I still can't get it right.

Any tips?

OK.  I just spent 4 hours at the knitting shop and this is the deal.  Cast on your 18 stitches with the stitches poking to the outside of the hat.  Knit the first row, then seed stitch the next two so now you have 3 rows.  OK, so now here is where is gets tricky but all you do is follow the pattern.  K1, K2Tog then seed stitch until the last 3 stitches and K2tog, and K1.  The following row is a seed stitch.  The trouble is keeping up with the seed stitch in either rows.  the trick is to look ahead in your row to figure out the sequence of purls and knits.  So if your stuck on the decreasing row (the one where you knit two together), look ahead in the row and see if you can spot the pattern.  So, if you can figure out where a purl bump is, count back to your stitch that you are about to knit in this fashion, k,p,k,p,k,p until you get to your stitch.  The same thing is true on your next seed stitch.  Look up father down the row to pick up your pattern and count back k,p, k,p (or p,k,p,k depending on the pattern) until you get to your stitch.  It works and now I have a fab devil hat!  Phiew!