There are two ways to use iron on dots, since I think they are evil I haven't used them in 27 years. One way is as I described, you pick up the dots as I did the gingham and that creates your pleats and smocking design as you smock across the fabric. This method has been referred to as American smocking. Not many people have heard that term, like many people from England have never heard it called English smocking. English smocking can be done with iron on dots as well. This way to use the dots is the truly evil evil side of those &^%$# dots. You pick up each dot with a tiny stitch to form pleats across the fabric that you then go back and stitch the smocking on. (I am sure my oldest daughter and my friend Jan are cringing at the grammar in this paragraph. Sorry girls.) I pleated ONE dress with those dots, never finished it. I was so done in by pleating it by hand, I had long lost interest by the time it came to smock. I love the smocking part, not the prep part.
I think I found the pattern that I used to make that little blue gingham dress. I found it at "America's Garage Sale" aka ebay.

It is the same smocking design. This pattern is from the 70's the seller stated. I may have bought when my oldest was born. I thought I still had the pattern. I still have the pattern I made my sister a toaster cover with, why I have no idea, but I didn't keep this one. Anyone want a pattern for a toaster cover? In the description for this pattern it states that it has the transfer dots included, but I am sure it has the gingham directions as well. I wouldn't have used those dots twice.
I pondered re-making the same little dress out of this blue plaid, and Children's Corner Lee. I am sure the embroidery would be light year's better, I would pipe the yoke, pleat it before I smocked it on one of these handy dandy gifts from the gods, the Super Amanda Jane pleater,

I pondered re-making the same little dress out of this blue plaid, and Children's Corner Lee. I am sure the embroidery would be light year's better, I would pipe the yoke, pleat it before I smocked it on one of these handy dandy gifts from the gods, the Super Amanda Jane pleater,

and surely the construction would be immensely better. But I stopped myself. I loved that little dress, love that picture, I loved that I had made it for her and so began the legacy of taking pictures of my children in their mommy-mades. If I remade it, it just wouldn't be the same dress made by a young mom with two tiny children, little to no time on her hands, working full time to help put her husband through school; but loved her children enough to wrap them in stitches of love. Sewn while babies napped or everyone else had gone to bed. That little dress really can't be replaced. So I walked away from the project. Its better that way.