At my "friends" shower, everyone was asked to bring a letter to help decorate the nursery. Most of these came from shower guests, whether they made it to the actual shower, or sent the letter before or after. The hubs and I did decorate a few ourselves because we were missing just a couple. We also painted a few because they came plain and we wanted to jazz it up a bit.
I've had them on the dining room table for a few weeks now, debating the best layout. Then I moved them to the floor and taped out the exact area of the wall space I had to work with. To hang them, I started with the E at the top, and worked my way over and down on both sides, then filled in the middle - eyeballing as I went. I'm still waiting for that letter Y (I painted it at the correct size because we just haven't seen that friend to get it yet), but you get the idea.
Here are some shots of the nursery ready and waiting.