I have already designed the prairie dog puppets and I have purchased the fabric for two of them. I'm going with terry cloth and I believe that it is going to be a challenge to get the fabric to fit right because it does not have any stretch. Always before have I've used fleece that has some stretch to it which made fitting fabric significantly easier. But the principles of covering are the same I'll just have to fuss with it till it comes out right.
For the colors I'm going with some cartoon type colors. Greens for one, purples for another and I haven't decided on the others yet.
I'll have pictures as soon as I get some actual construction done.