I embroider on everything. My primary embroidery machine is a Brother Innovis 4000D. I've found the trick is to be sure the piece you are embroidering on is bigger than you need. The design will "shrink" the material so you want to be sure you have enough excess material to cut your square/rectangle/whatever down to the size you want.
I recommend this site. They have tons of tutorials and a showcase of projects and weekly sales that can't be beat!
http://www.emblibrary.com/EL/default.aspx
Fleece Rag Quilt
[ATTACH=CONFIG]149106[/ATTACH]
Fleece Scarf with Fight for the Cure Theme
[ATTACH=CONFIG]149112[/ATTACH]
Quilt Label
[ATTACH=CONFIG]149133[/ATTACH]
Mug Sleeve
[ATTACH=CONFIG]149136[/ATTACH]
onesie front
[ATTACH=CONFIG]149140[/ATTACH]
Table Topper
[ATTACH=CONFIG]149141[/ATTACH]
Hobo Purse
[ATTACH=CONFIG]149143[/ATTACH]
Back of Fleece Jacket, The embroidery matches the jacket collar and sleeves
[ATTACH=CONFIG]149144[/ATTACH]
Burp Cloths
[ATTACH=CONFIG]149145[/ATTACH]