I thought that was it..I attempted that at first..didn't use the iron though. I think the loop I'm trying to make is too small to do it that way. I'm not sure though. Maybe you do it like that no matter how big the loop is.
Attached is a pic of what I'm trying to do. The brown tendrils on top of the bunch is what I'd like to do. I don't like the regular applique and I'm going to take it off.
The strips are 3/8's wide.