Can anybody tell me about a stitch remover that can work on a towel?Please tell me about it. I have some mistakes and I can't correct them.

I was searching for one myself and I have seen one at AllStitch.net.  You can contact them and ask if it works well on towels. This is what the advertised on the page that I opened. I hope this information helps you.

                                 Maureen

 Peggy's Stitch Eraser removes stitches in fabric without damage to material! A must for anyone who sews!

- Special cutting head
- Powerful motor
- Lightweight & portable
- Removes stitches from almost anything
- Easy to clean and maintain
- Unlike regular razors, this unit has a special blade for cutting thread

We carry Peggy's Stitch Eraser as well. What is actually happening at the moment is that Peggy's Stitch Eraser 7, the cordless version, is no longer being made, and Peggy's Stitch Eraser 8 will be shipping from the manufacturers shortly. You will have trouble finding PSE7 anywhere at the moment, but the good news is that PSE8 will be out shortly, at which time you can be sure that we will feature it in our weekly specials.

nektaria:

One way to correct mistakes on towel is to embroidery a design in a square, rectangle or oval and applique it over the mistake. There are some great applique shapes available if you don't have software to create your own.  Annthegran has an applique shape set http://www.annthegran.com/Product.aspx?t=1&i=6586

 Sometimes a do squares in sets of three on the bath and then only one on the hand towel and the design alone (not in an applique frame) on the wash cloth to make great decorator towel sets.

I have used the Peggy Stitch remover and have made holes in products! Yikes! What am I doing wrong?

I've had the same problem...holes in my fabric, using Peggy's stitch eraser. 

You have to work gingerly with Peggy's. First, even though it looks like an electric shaver, it doesn't work like one. You hold Peggy's upside down over the back of the stitches you want to remove. Pressing very lightly, move the eraser back and forth until you have a small portion of clipped bobbin stitches. Then turn the design over and use you tweezers to remove the threads that have been set free. Then turn it over and continue.The trick is to keep the eraser above the stitches so your fabric will be unaffected.  Eventually you will get everything out without damaging your fabric. Or almost everything. Sometimes there are stitches that are so tiny there's no getting them out. Usually this doesn't matter as you're going to be embroidering something in place of the stitches you've removed. Keep in mind that your fabric has now become fragile. If possible I like to iron some fusible interfacing on the back to give the fabric more stability. If you don't sew or don't have any fusible interfacing handy, use a fusible cut-away stabilizer instead.

Where can you buy this Peggy's stitch remover.  I have never heard of one...........Carolyn