This pattern came from a book called Ornaments Galore: Volume Two and has been adapted slightly from the pattern in the book. The letters are actually stitched with a white satin floss rather than the regular cotton. More to come on stitching with satin later, as it is a huge pain in the ass.
Wreath update: You may remember that I week or so ago I posted a picture of the wreath ornament I was making. Well it kind of went downhill from there. I had already messed up a little during the stitching, then I decided it would be a good idea to sew a little pillow-like thing to put it on. Not one of my better ideas. So I (with some help with Manny, as he is admittedly the more creative of the two of us) have decided on a different way to finish the Christmas ornaments. More to come soon!