machine embroidery for a baby's bib

I bought these bibs at IKEA. I like the crispness of them  (the white with the brilliant edging) and the price. However my 'old school' sewing/embroidery machine ate a hole in the bib when I tried to put a design on it. I was bummed and put them away in a wad in the unfinished projects drawer.
But then! I took the class at the Tech Shop http://www.techshop.ws on how to use their very nice (and dedicated) embroidery machine. So I excavated the bibs to see if this machine would be kinder and gentler.

Step 1:

I decided that since these bibs are very stretchy I would use a cut away stabilizer. It's a bib so leaving behind a little stabilizer is no big deal. I put the stabilizer down on the hoop, then the bib and THEN a water soluble stabilizer on top - since this has a bit of a terry cloth nap to it and like I said, it is very stretchy and I hoped this would help keep it still in the hoop and give the machine a smooth top to glide over.