I also used a serger for the majority of the sewing so that the edges won't fray in the wash. It is amazing how well a serger can churn over all the gathers and layers without a glitch where my sewing machine would have made a fuss.
I found a free sewing tutorial and pattern on Small Dream Factory for a toddler's dress with the Peter Pan collar (http://smalldreamfactory.blogspot.com/2012/09/toddler-dress-with-peter-pan-collar.html).
I wanted the dress to have a gathered skirt instead of just an A-line, so I mimicked this dress (http://vanillaandlace.storenvy.com/products/442850-mini-lucy-p).
I used a contrasting, pale pink bias tape to finish the armholes and still have to attach the collar. I'm still uncertain whether I want the green collar or if I need to go find a solid green or purple to make it more cohesive. I'm planning to tie the collar color together by having a small edging on the skirt in the same fabric as the collar. Should I stick with the pale green and white floral collar that I have now or should I hunt for a solid? Thank you!