I love the idea of making a memorial for your dad. Sorry for your loss - it's never easy. This is a great way to remember him in a positive and lasting way. These are two quilts that I made for my children from clothing that meant something to them. The first is a quilt for my son from his shirts. Manly. There is one similar to this at www.quiltville.com The next one is a quilt for my daughter's wedding. I used scraps from all the dresses I made her as a little girl. I was supervisor of a fabric store and made most of the model clothing for the store, then got to keep them.
This is just a couple of examples of what can be done. Keep us posted!
I also used scraps from my daughter's dresses from when she was a little girl and made this for her wedding. (complete with a photo of her in each dress in an album)
I used Adam's shirts and made this quilt. It turned out great!