This tutorial is the result of a challenge posted on the PIRC Bulletin Board "Challenge Your Creativity" forum, in which a user requested that we develop a technique to duplicate the use of stitch-like brushes in Photoshop. Yarnie's post of an applique-type flower inspired me to go looking for a Sunbonnet Sue pattern to work with, and this is the end result. You will need:

Ulead PhotoImpact 6, 7, 8 or XL. This tutorial assumes that the user is an intermediate to advanced PI user, familiar with the Selection tools, the Edit>Trace command, using the Layer Manager to work with objects and the Easy Palette to apply presets.

Fabric presets can be downloaded from either of the following two sites, or you can use any of the presets already included in your Easy Palette:

"Rosie's Buds" presets, downloaded from Rosie Hardman-Ixer's site. These lovely florals are on page 3 of her PI Presets, after clicking on the Graphics and PI Downloads links.

Fabric presets downloaded from Acadie's "Little Vikings" site

If you are unfamiliar with installing presets please refer to Deb Hardisty's "Importing Downloaded Presets" tutorial.

Sunbonnet_Sue.ufo (Click on file name to download--contains all parts as path objects.) or your own line-art image as a pattern

If you are using the Sunbonnet Sue file to do the tut, open the .UFO file and skip to step 2. If you are using your own line art image, create an object for each applique piece:

Use the "Magic Wand" Selection Tool to select a piece.

Expand the selection to include the outline (Selection>Expand/Shrink...).

Use Edit>Trace>Selection Marquee... to create a 2D Object from the selection. Repeat this process for each appliqued piece.

To create the stitched outlines of the pieces, repeat the following steps for each piece:

Select an object in Layer Manager and use Edit>Trace>Selection Marquee... to create a selection from the object (set Mode to "Selection").

Shrink the selection (Selection>Expand/Shrink...) by 10 pixels.

Use Edit>Trace>Selection Marquee... to create a 2D Object from this outline. We'll call this the "Stitch Template".

Choose your stitch. You can use an upper case "V" for a zig-zag effect or a lower case "X" for a cross-stitch effect. For Sue, I used Lucida Console, size 24, lower case X in Black. Click anywhere in your image and type the letter. Then click in Object Manager to select your Stitch Template. Hold down SHIFT and click on the X object. Both objects should now be selected in Layer Manager. Right click and select Wrap>Fit Together.

With the new stitched outline object selected in Layer Manager, click on Web>Button Designer>Any Shape.... You'll see a row of bevel and lighting presets at the bottom of the Button Designer Screen. Click on the third preset from the left, then click "OK".

NOTE: If you are using a different image/pattern for your applique, you may find that you need to use a different font size and shrink the selection of the piece more or less than 10 pixels before creating the stitching template, in order for the stitched outline to fit the applique piece correctly.

When all the stitched outlines have been created, erase any duplicate stitches, e.g. on the upper edge of Sue's shoe and the upper edge of her dress, below her bonnet.

Select each applique piece of Sue and apply one of the "Rosie's Buds" presets (or another fabric-type preset).
Merge each stitched outline with the corresponding piece of Sue, then arrange them, top to bottom, in your Layer Manager in this order:

Bonnet

Arm

Hand

Dress

Shoe

Right click in Layer Manager and select Select All Objects, then right click again and select Merge as single object. Now Sue's ready to go where ever you want to take her!

If you had fun with Sue, consider making her friend Overall Sam, too!

If you are using the Sunbonnet Sue file to do the tut, open the .UFO file and skip to step 2. If you are using your own line art image, create an object for each applique piece: Use the "Magic Wand" Selection Tool to select a piece. Expand the selection to include the outline (Selection>Expand/Shrink...). Use Edit>Trace>Selection Marquee... to create a 2D Object from the selection. Repeat this process for each appliqued piece.
To create the stitched outlines of the pieces, repeat the following steps for each piece: Select an object in Layer Manager and use Edit>Trace>Selection Marquee... to create a selection from the object (set Mode to "Selection"). Shrink the selection (Selection>Expand/Shrink...) by 10 pixels. Use Edit>Trace>Selection Marquee... to create a 2D Object from this outline. We'll call this the "Stitch Template". Choose your stitch. You can use an upper case "V" for a zig-zag effect or a lower case "X" for a cross-stitch effect. For Sue, I used Lucida Console, size 24, lower case X in Black. Click anywhere in your image and type the letter. Then click in Object Manager to select your Stitch Template. Hold down SHIFT and click on the X object. Both objects should now be selected in Layer Manager. Right click and select Wrap>Fit Together. With the new stitched outline object selected in Layer Manager, click on Web>Button Designer>Any Shape.... You'll see a row of bevel and lighting presets at the bottom of the Button Designer Screen. Click on the third preset from the left, then click "OK". NOTE: If you are using a different image/pattern for your applique, you may find that you need to use a different font size and shrink the selection of the piece more or less than 10 pixels before creating the stitching template, in order for the stitched outline to fit the applique piece correctly.
When all the stitched outlines have been created, erase any duplicate stitches, e.g. on the upper edge of Sue's shoe and the upper edge of her dress, below her bonnet.
Select each applique piece of Sue and apply one of the "Rosie's Buds" presets (or another fabric-type preset). Merge each stitched outline with the corresponding piece of Sue, then arrange them, top to bottom, in your Layer Manager in this order: Bonnet Arm Hand Dress Shoe Right click in Layer Manager and select Select All Objects, then right click again and select Merge as single object. Now Sue's ready to go where ever you want to take her!
If you had fun with Sue, consider making her friend Overall Sam, too!