@Chris H: When I was making mine I looked on Ravelry on the pattern page where people post their finished gnome and every one had done that brim differently so it was good to know it wasn't just me that was confused. Thanks for the information your way does make sense. I probably wont make it again until next year but I have put a question mark to remind me to rework it.

I find it a bit tricky, I pin it up all round, out it on his head then push down on the inside to make sure it's even, pin that in place and then stich through along the lower edge. Hope this helps, doesn't take as long as it sounds!