Having made the decision to continue with (and with plans to finish) this wallhanging, I pulled out Dream a Little Dream to see where I was and where I needed to go.
I had already cut out the background fabrics for the top part of the Love panel (the middle section of the wallhanging), and last night I set to work on creating the fusible appliqué pieces and stitching them down. I used matching thread and a blanket stitch (28, dialed down to a slightly shorter length and width, on my Pfaff 2046) around each of the hearts and letters.
This section has some scrollwork embroidery in the left, top, and right border pieces, and I plan to do that with some perle/pearl cotton.