Can you use the labellers?
I bought one at kmart on sale for $40 and labelled all dd's clothes and lunchbox etc... might need to sew on though.. not sure if it will stick

FJ - going well. have been playing with how to sew them - ie inside out... rough edge etc - doesnt matter as long as they soak up the wee... (havent had the chance to use yet though). Washed them all 3 times so far (first hot with hot dry prior to sewing like you said) then throw them in the wash when ever i do a wash...