Anybody know the significance of the infamous scraves?

http://jyanet.com/mtm/010321.shtml
This article may help answer your question.

Interesting article.

I always figured something along those lines. After all, Rhoda was a 'creative artsy' type of gal (window dresser, costume designer), and that reflected in her clothing. Bright colors, bold patterns, big jewelry, and of course - the "scarves" around her head. All her personal expressions to show her 'creativity'.

By the third season, Rhoda went through a metamorphis (addressed in episode 10, in which she dons a 'new sophisticated look'). Seems the writers were tired of the 'artsy' Rhoda, and updated her into a sophisticated, sensible business woman.