Embroidery is an ancient variety of decorative needlework in which designs and pictures are created by stitching strands of some material on to a layer of another material. Most embroidery uses thread or wool stitched onto a woven fabric, but the stitches could be executed in, for example, wire or leather strands, and embroidery can be worked onto many materials. ...
en.wikipedia.org/wiki/Embroidery

Decorative stitching on fabric. Generally involves non-lettering designs but can also include lettering and/or monograms. Evidence of embroidery exists during the reign of Egyptian pharaohs, in the writings of Homer and from the Crusaders of the 12th century. Evolved from hand work to manual sewing machines and from handlooms and schiffli machines with hundreds of needles to high-speed, computerized multihead machines.
stitches.com/mag/apparel_embroidery_glossary/

See the links.

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Note added at 10 hrs (2007-06-28 13:58:29 GMT)
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Okay, you made me work harder.

I found a cogent definition of изонить at this site: http://nityanaya-grafika.narod.ru/chto_takoe_nityanaya-grafi...

Quoting in part:

Нитяная графика, изонить (изображение нитью), ниточный дизайн – это графическое изображение, особым образом выполненное нитками на картоне или другом твёрдом основании. Нитяную графику также иногда называют изографика или вышивка по картону. Существует ещё несколько других названий нитяной графики. В качестве основания ещё можно использовать бархат (бархатную бумагу) или плотную бумагу. Нитки могут быть обычные швейные, шерстяные, мулине или другие. Также можно использовать цветные шелковые нитки.

So the key point of изонить seems to be stitching on a rigid substrate of some kind. The closest term I found to describe that technique is "embroidery on paper" (or cardboard or parchment or parchment paper). Here are a few references: http://www.circuitdesarts.com/Artiste/Ladouceur/, http://www.nordicneedle.com/Merchant2/merchant.mvc?Screen=CT... http://www.amazon.com/Creative-Embroidery-Paper-Erica-Fortge... http://www.amazon.co.uk/Embroidery-Parchment-Paper-Craft-Spe...

There's a picture of an "embroidery on cardboard" on this site: http://www.midan.org/en/collection.htm. It's kind of small: bottom right of your screen.

Hope this helps.

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Note added at 13 hrs (2007-06-28 16:38:49 GMT)
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ASG, I'm embarrassed. I just realized that I found the same source for the definition of изонить that you did . . .

Well, actually you'd rather make sure if what you're looking for is a real equivalent used in English or you're up to inventing a pure calque of ИЗОбражение НИТЬю...
I personally prefer COCHA's version, yet can suggest a bit of experimenting such as 'art-stitch' or 'stitch imaging'...