What products are best to use to applique stretch cut-out designs onto stretch lycra?

Question: I am just starting out making gymnastics leotards in stretch lycra for my grand-daughter. I want to know what products are best to use to applique stretch cut-out designs onto stretch lycra. I figure I need a water-soluble "glue" sheet which will allow the fabric to be flexible when it is worn, and also a water soluble "stabilizer" for when I am sewing on the applique - is this correct? (from Magaret Neith - VIC)
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Suggestion 1: You need to use applique wonder or visafix to the piece of fabric that is the cut-out. Make sure you have an applique mat when you are ironing the applique to the main garment. You must use a needle to suit stretch fabric and sew slowly. There won't be any stretch in the applique piece as the glue will become a little stiff. the needle is very important as the use of an incorrect one will result in small holes and ladders will appear. I hope this will help. (Helen Senior from Glenroy, VIC)

Suggestion 2: I have tried several techniques. The most successful (though time-consuming in the extreme) was to cut out the applique and spray it with embroidery spray on the back, place it on my fabric then lightly iron on (and pin) a tear-away stabilizer on the top, then zig-zag sew the edges through the stabilizer. This seemed to hold the lycra without any stretching. The most time-consuming bit was pickikng out the tear-away from between the stitches. I also tried the same technique but pinning a water-soluble fabric on the top of the applique instead then zig-zagging - this was OK, but did lead to a bit of "waviness" on the lycra. (Magaret Neith)