Here are sweet Marie's instructions for making a patch; I have used this technique to patch some jeans for a little DGD and it works wonderfully. "all you need is an applique shape design in the shape you'd like for your patch... and you can find tons of those shapes in the files section of my group...
what you need to do is this:
1. hoop water-soluble stabilizer
2. lay a layer or cutaway stabilizer of heavier weight fabric such as denim or canvas
3. run first color of the applique shape
4. trim the fabric or stabilizer close to the stitches all around the shape
5. run second color (it will tack down everything again if somehow you went too close to some of the stitches)
6. run the third color of the applique shape, the finishing satin stitches
7. embroider your "patch" design in the center
8. to remove the water-soluble stabilizer from around your patch without wetting your patch... use a Qtips and wet all around and it will melt away.
at step6, you've got your patch all that's left to be done is embroidering your design in the center of it.
my advice on that is... before you start anything... go find your applique shape here: http://groups.yahoo.com/group/MyEmbroid ... s/DESIGNS/
and save it to your computer. In your embroidery software, match both the embroidery for your patch with the applique shape so that you can make sure the sizes of both fit together and that you like the overall effect. Save as a new design with both design becoming one design file and send that over to your machine. Just make sure the applique shape gets done first."
As a little footnote, I make new designs using Marie's applique shapes and other added designs all the time. Looks really great to put one of Marie's monograms in the center of a shape (I like the scalloped circle).