If I put both of these chain stitch diagrams together, I think that I may well be able to figure it out.
Get started with embroidery :: How to embroider :: allaboutyou.com
using heavy chain stitch to embroider letters More
Basic Ribbon embroidery
A Colonial Knot is a little different that a French Knot. It doesn't make that little doughnut. It makes a good tied knot but wrapping the needle in a figure eight. Check it out...
many pictures and instructions for embroidery stitches
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Great Embroidery Tutorials! For example: the Braided Chain Stitch.
teapot tea towel pattern.pdf