I was going to make this a Step-by-Step Instructable, but basically it would be instructions on using a really specific model of the Singer Futura embroidery machine and software. I really didn't feel like going into detail on how to use their software since it is relativity intuitive and my settings wouldn't be helpful since it generally takes a bit of fussing from job to job.
Instead, here is photo documentation of how to set up your fabric and thread the machine. The machine needs to be re-threaded between each layer (color).
I was attaching fusible backing to the pack of each patch that I made so that it could be ironed on (if desired) to whatever I wanted to attach it to.