Why should it? The partyhat was a one-time-only prize for a special event (actually it came out of a Christmas cracker, which was awarded for the event). There is no way to make a partyhat now. If somebody tells you he knows of a way to make a partyhat - well, it simply isn't true.
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shears: [ ] [i] [i] [ ] i = iron
You have to first make shears. Get 2 iron ingots and place them diagonally on your crafting square in your inventory. Now hold the shears and right click on the sheep.
You can make bucket, shears, iron tools and armour. Google it if you don't know the recipes.
dude that question doesnt make sense.
You buy shears and then go shear a sheep. After you have done that, up in Lumbridge castle there is a spinning wheel on the second floor. Use it with what you sheared from the sheep.