I use regular yarn for my baby afghans, but I've never done any clothes so I don't know what the "rule" is about yarn for baby clothes.
The pattern for the Italian Heritage Afghan is called "Alpine Meadows" and it is really frustrating me. I did it at Christmas, and I sure don't remember having this many problems getting started. The pattern says to chain a certain number, and then when you do the 1st row following the pattern it doesn't use all the chains. If you continue the pattern of the first row to use all the chains then the next row doesn't work out right. Argh! I've started and ripped out twice now, and I'm giving it one more chance. If I can't get it to "click" this next time then I'll give the bridal couple something else for a wedding gift. I don't need this stress!
I was doing a pattern where the same thing happened...what I did was just reworking it minus the amount of chains I had left over after doing the pattern. Hope this helps.
And thanks for the tip on the regular yarn for baby afghans. I'm glad my work won't be for naught...btw .. here's a pic of it when I first started:

Right now it's 16 rows of the multi. I'm finishing it with 2 rows of white, a row of multi and a row of white. I'll show when I'm done. I'm so excited!