Here is what I spent my whole evening on. Here is the picture of it before it went into washing machine(where it still is as I sit and write this.)
I also did mine a little differently. I sewed it like I normally do but I sewed all around the edge too and then cut to that seam. So only the edges will have the rag look.
Here is my quilt tag sewn on. I got 100 of these from namemaker.com.