Ok, here we go!
Start of by cutting a square of fabric about 6"x 6" and stretch it tightly onto your hoop. Cut out your pattern and trim to fit inside the back of the hoop. To trace your pattern onto the fabric, I've found holding it up to a window or light make it much easier to see through the fabric. Trace the pattern lightly with a pencil or fine-tip pen. Your stitches will completely cover your pencil/pen marks, but try to keep them neat and straight to make your stitching work easier.
Next, thread your needle using 2 strands of embroidery floss. For embroidery newbies: floss is made up of 6 individual strands. Floss is very thick, so you usually don't use all 6 threads at the same time. The way I do it is the first cut a length of thread about 30"-36" in length. Separate out your two threads by pulling gently, and set aside the remaining 4 threads to use later. Thread the two strands through the eye of your needle, and then fold your thread in half making a small knot at the end. Since you've double it over, you'll end up stitching with 4 strands which is exactly what you'll need for both stitches in this pattern.
Next, stitch the outline of your letter using a split stitch (click here for a great video tutorial). A split stitch will help the lines look straighter. Don't worry too much if you're lines aren't perfect, it just adds to the handmade charm!
Once you have your outlines stitches, you can fill in the rest of the letter using a simple satin stitch (click here for the video tutorial).
To finish your hoop & prepare it for hanging, first make sure the fabric is stretched tightly and the top pin is secure. Then trim the excess fabric away from your hoop, leaving about 1/4- 1/2" around the diameter of the hoop. Run a small bead of craft glue on the back of the inside hoop, fold over your fabric and press into the glue. This video tutorial uses hot glue, but shows the same method.