You may not want to hoop it if it will not be cut away because of hoop burns. Hoop the stabalizer and use spray adhesive to hold fabric in place. If you have a fix feature stitch around the design area to hold fabric in place a bit better. Keep in mind the pile direction. I have used the standard size 12 needle as with other things. I believe tear-a-way would work fine. I would also prewash the fabric because of shrinkage.

Carolyn is right, add use WSS as it does have a bit of a pile.;)

Goot some good advise alredy. Nothing but a flower to add. *2U