Sarah,
We gave Noelle her Bitty Baby for her second birthday. She had been "mothering" her stuffed animals for a couple of months already: tucking them in, feeding them, etc. so we knew she was ready. Like you I have a problem with bad hair on dolls (seeing the scalp gives me the creeps) so I really liked the idea of the molded in hair.
The stoller is American Girl (Bitty Baby) as well. My parents bought it for her birthday too ($34, not what I would have spent if we had a Target to shop, but it IS good quality). Another thing that I found I really like about American girl is their sale page - you can find outfits they are discontinuing for as much as 40% off. Nothing at all wrong with the outfits, just last year's styles!
Jen in Okinawa
Mom to Noelle (10/25/01)