So far, I've found some older software to get the logo cleaned up into a "workable" stitch converted picture. I've got it set to 14 thread colors, and the first render looks... well, pretty bad, actually.
I think what I'm going to do is clean up the boolits, cut down the "shading" for the threads and maybe ease the background color into maybe only three instead of what looks like 5 or so. Any suggestions as to what to do? Anyone who has worked on embroidery software have any input? This will probably take me another week or so to get something workable, by then I should have some workable images to throw around and make into actual patches.
The theory is having a velcro backing to it so most everyone can use them, I may see if the wife will help me find some of that iron on stuff too! I was hoping to keep it about the same size as a flag patch would be, but that might be a little difficult as it's slightly longer than tall.