Embroidery Library has just put a tutorial up showing one way to make the Christmas Tree Napkins - great timing, right? :D It shows how to mark for machine embroidery, but those techniques could also be used to place marks for applique.
http://www.emblibrary.com/EL/elproje...log=Elprojects
(Like they don't get enough of my money, now I gotta get more :twisted: :lol: :lol: )