We bought pillow shams from disneystore.com and used fabric markers. Fabric markers are supposed to make a solid line without the ink spreading when you write. I was careful to NOT buy the markers that require heat to set.
Thought about using one of those stitching rings but figured it would take too long. Instead, we just held a section of the pillow sham over an autograph book to make it easy for the character to sign.
http://im1.shutterfly.com/media/47a1dc02b3127ccefc3bbdf4089a00000030O00AZNWjVk0Yt2IPbz4a/cC/f%3D0/ps%3D50/r%3D0/rx%3D550/ry%3D400/[
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:thumbsup2 this looks TERRIFIC