UPDATE
I have had a couple of questions asking why I am selling this item, instead of simply giving it away. We have TRIED giving it away, but it continually makes it's way back to us. Finally, as a last-ditch effort to rid ourselves of this curse, we have decided to try to sell it. Our reasoning is this; we started having the problems after we bought the Stitch. Maybe because we purchased it, we now OWN it, and everything that comes along with it. Since giving it away, or throwing it away does not work, and we cannot destroy it, maybe we can sell it, and whoever purchases it, will then own the curse. If worst comes to worst, and it does end up coming back to us, we will still have a bit of time free from the demonic toy.
I plan on talking to a priest in the next day or so, to see if the toy can maybe be exorcised. Even if it can, and everything seems to be successful, I will still want to get rid of it, as I won't be completely comfortable until it's completely out of my life. I just want to make it as safe as possible for any potential new owners. I'll keep you posted as to any news.