Added Feb 18, 2011
London, United K...
You should try and use an open foot or a clear embroidery foot for this step, so you can see the line that you are following. But don't worry if you don't have one as it's not impossible with a regular foot.
Using a narrow and fairly close together zig zag stitch you want to stitch along the main lines or border in your lace. From the picture you can see that is not quite as close together as a satin stitch but it is fairly close together. If the border line is positioned in the centre of your foot, you use the zig zag stitch to stitch across the border and you are in fact only stitching either side of the border.
It is a bit stop and start but that's ok as you will be trying to move the lace underneath your sewing machine foot. In order to change the direction that you are sewing in, remember to keep the needle in the down position and pivot to get round all the shapes in your lace.
The thing to remember is that if your lace is particularly intricate, it will be too difficult to applique around every single shape and that you just have to follow the main lines. You may also find it easier to put the fabric and lace on top of some tracing paper or tear away stabiliser, especially if the fabric you are using is particularly fine.
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