OK, I'm all done.
More pictures at:
I decided to do something that wasn't from a pattern so that I could see how easily it would be to trace through the towel. I thought I would need my light box but I didn't, it was very easy to see a drawing done with a thin sharpie. I tried a big chunky chain stitch, french knots and small stem stitches and it stitched like a dream. It stayed nice and tight in the hoop and gave the needle something to bite into. I had to add some rick-rack because, well.... I have a rick-rack addiction and it wasn't even an option. I love the towel and will love it even better if it has a nice price tag.
You will notice that the word from is a darker shade of red. Good lighting is very important kids! I realized this morning that it was the wrong thread and I decided to just leave it rather than hold up the tour by ripping and re-stitching.