This is a VERY interesting research project by Yuki Igarashi and Takeo Igarashi, both Ph.D. students at the University of Tokyo. The Plushie-e software is used to design soft toys interactively. The system develops the pattern as you go, showing the design view and the pattern view side-by-side. Its very impressive. A beta version of the software is available to play with. I hope they develop a commercial version of the software, and I hope they price it for regular consumers and not just "industrial" use. Sign me up!
Pointy Cat
This pointy cat was made from a free pattern available over at Wee Wonderfuls. Its quite easy. The only difficult part was stuffing the extremely thin tail. I cheated and glued on the felt stripes. My three year old chose the fabric.