Here is a tutorial on using a standard embroidery design to do an applique. I was using the janome 8000 when I did this.
Choose a design with a satin stitch outline that's fairly wide, and hopefully where the fabric is not covered by embroidery, or you'll have to skip those elements. You can replace just one colour using fabric.
This design is from the memory card 2 that every one got with the janome 8000.
Step 1: Outline on the applique fabric the design and cut it out- don't be too generous. It was applied to red fabric.
Step 2: repeat the outline on the fabric to be appliqued : You may have restart design if its not normally an applique:
Step 3: position cut out applique and start machine so it tacks over the edge. Many designs will do this before the satin stitch if its an outline. If not , redo outline . If you have too much fabric you may be able to trim it in the hoop at this point, if you're careful.
If necessary skip any colours that would cover the fabric unnecessarily. ( I skipped one colour to give a felt jacket to a bunny rabbit once- if you have a janome 8000 you know the design)
The applique was applied to plain fabric then made into a jacket. I put two more on the jacket directly as well. I would suggest you practice first. its much less stressful if you know what you are doing.:)
what a fluke having matching buttons!
for more applique see my first digitizing atempt on this blog :)