I found a quilt pattern that I love and made it for a great-niece. It has an embroidered strip for the name (I don't have an embroidery machine so I used templates, as suggested, and appliqued the letter onto the quilt strip). It uses a charm pack sashed with white and bound with a colorful patterned fabric. You can find it at:
http://ocd-obsessivecraftingdisorder...t-pattern.html