Baby #1 had purchased wood letters that I painted and hanged with decorative ribbon:
Baby #2 had a pennant banner thingie with a different letter on each triangle (I just did her nickname):
For baby #3, I cut out each letter on pink knit fabric fused to double stick fusible then ironed them directly onto the wall. (here's my font boyfriend again!)
There are a lot of tutorials on how to do this, but that previous sentence is about all the tutorial you'll need. In case you missed it:
1. Iron one side of double stick fusible to your fabric.
2. Cut letters out of fabric using scissors or silhouette or what have you.
3. Peel paper backing away and iron to wall.
That's it. There are ways to do this using liquid starch too, but why would you? This way is so less icky.
Can you tell baby #3 was supposed to be a boy named Jude? We improvised. We use this nickname most of the time, but her full name was revealed here, if you're interested.
And while I'm on that subject, here's a helpful little flowchart from love all this:
The "na" is my favorite :)