I had to play for a while but I got a result I like!

Your directions did make sense though I didn't follow all of them. I liked the look I got from erasing some of the stroke outline so I didn't try adding black dots for the stitch holes.
Thanks for suggesting the wave filter! It gave the stitches a great nubby hand stitched look. I am trying to attach a picture of my result.
Thanks again for all the suggestions! I'm really growing and learning how to use my tools better because of sbb and its great user community!
Stacy