Magic Hat with Numbers

I'd really appreciate any feedback I could get on how to make this better. The glowing magic-ness emanating from the hat is driving me crazy. I can't make it taller or it hits the boundaries of the 512x512 box. And if I make the hat small it looks bad on the dock. Oh yeah, and the sparklies are crap. I hadn't gotten to those yet, so I just used a default Ps brush.

Thoughts? Help?