Ally had one similar when she was a bit smaller.  It worked well for her and didn't come undone.  Her hair got in the way and it started to grow.  It kept pulling her hair.  I eventually went to this for both my babies and love it.  Ally is just over 3 lbs and has been using it a long time.  It's on ebay too.
  http://i433.photobucket.com/albums/q...g?t=1245951084