Agree to use your computer and look for a font that will work for applique. Pick one that is not too fancy with a lot of serifs (the "feet" at the tops and bottoms of the letters). Otherwise you'll have a lot of extra corners to deal with. Try a sample with a raw edge applique method, satin stitch or buttonhole stitch. Use the fusible backing or try a glue stick for paper. Be sure to put something under your stitching area so the threads don't bunch. You don't have to use one of the expensive products unless you want to. I use tissue paper like you use for wrapping presents. I know some use paper towels. If you've not done satin stitch before, look for a tutorial online. There's some small tricks about turning corners/curves and where to stop with the needle down that will make your project smoother.
Here's a link to free tutorials on applique at Connecting Threads.
http://www.connectingthreads.com/tut...tutorials.html