I finally finished up the baby jacket. I used this pattern (Sweater with Ruffled Bottom) http://bellabambinaknits.blogspot.com/2010/02/sweater-with-ruffled-bottom.html but changed up the ruffled bottom and put a scalloped edging instead. I used Red Heart yarn and an I hook. The color is light blue.
Now, I was thinking that I had enough yarn to finish up a cute little hat to go with the sweater. But no....it never turns out that way does it? I ran out with the rest of this row and then the scalloped edging to go. I used this pattern http://crochetingcrab.blogspot.com/2009/08/sweet-and-simple-newborn-hat.html . The yarn was the same Red Heart with an I hook.