I dont think its a problem of overlapping CV's. The problem is all the 3 and 5+ sided polys.
Clean up your poly model by splitting and deleting edges so you end up with all quads before you convert to subD.
You should be able to get away with a lot less geometri around the legs, arms and eyes.
there is 2 edges inside the mouth and on the lower jaw that could easily be removed. they dont seem to do anything for your model except creating a 5 sided poly where the edge stops.
remember to delete any leftover vertices after deleting edges