In all of the levels in which you can lose your hat, lose it. Then, go through the warp a few times. When you are done, go find your hat. It should be a stack of hats! Take one, and Mario will put it on. Take another, and Mario will take off his hat and swing it like a weapon. Be careful, because you lose a lot of strength when hit like this. Also, you can't carry your hat for any more than that one level without doing the trick again.
Also, in Snowman's Land, if you lose you hat, get a star, then turn the N64 off, a snowman will be wearing your hat next time you enter the level!
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