I have a Little Gracie II, as well. I gave the wooden stylus with paper pantographs a try, but I found that I had a hard time matching the stylus to the paper. My advice, though -- try it, and see how you do. There's some free templates out there that you can practice with and see if it works for you.
My new machine (a Bailey) comes with a laser stylus; I haven't tried it yet, but I'm curious to see how well that goes. I believe the Grace company has a laser for sale on their site for a fairly reasonable price; it might be worth looking into.