I just stitched out a design from GGDesigns of an in the hoop applique owl (Ollie Owl) toy. It stitched perfectly, and this was my very first try at in the hoop applique anything. GGDesigns website also has just the Ollie Owl in the hoop applique. These are worth the money; they stitch out beautifully and the instructions are very clear.
I uploaded an owl applique some time ago.
Another cute set.
I saw this cute set on eBay.