New Project - Children's Hat

I'm working on a stealth project and unfortunately since my intent is to give it away as a gift, I cannot post anything about it at this time. Also, I'm only half way done with the garment and am not really in the mood to comment on it, lest it end up like the Queen of Beads socks in that 50% complete limbo land that is UFOs.

I started on a child-size Children's Cotton Hat in Last-Minute Knitted Gifts.

I'm knitting it in the recommended yarn, Mission Falls 1824 Cotton, and I have very mixed feelings. I love that the yarn is textured. But I absolutely hate that the thin piece of yarn that is wrapped around the larger piece is broken in over a dozen of places. It really makes me sad that I purchased yarn that is this shoddy. It's a lovely orange-sherbet color and fun to knit with but who wants string hanging out every which way. I can't think this is the intent of the yarn manufacturer. I'm willing to give the yarn another shot but just based on this limited experience, I would never want to knit a larger garment with it.