I would love to hear if anyone has tried or done this. I had someone in my CSI LSU Seminar( Crime Sewing Investigation, Lettering Special Unit ) tell me that they use a very light weight vinyl product under fills on towels. I was told that the vinyl tears away around the edge of the embroidery and helps good colour coverage and also holds down the pile of the fabric. The result is a really nice embroidery on towels. They tell me that even after the towel is washed it looks great and the vinyl doesn't show any negative effect.

I was at my Mothers over Christmas and walked into her two bathrooms to see beautifully displayed a set of towels, towels that I did for her. The ironic thing is I have no embroidered towels. It became a bit of a New Years resolution to make myself some nice towels and linens. When I did the towels for my Mother is was VERY early in my career and someone told me about using plastic wrap for holding down the pile on towels. You know, the kind that you wrap your leftovers in. That was probably before there were water soluble fabrics available so that is my excuse. There under the embroidery of my Mothers towels, clearly visible was plastic wrap. These towels have to be over 20 years old. Ok, guess I need to make Mom some new towels too. 

From the Toronto Trade Show, Beverley Field

The Embroidery Dinosaur.