Yep - I think velour would work. It wouldn't keep the baby's bum as dry as micro, but it would be soft.
I use a regular old machine need and regular cotton/poly thread - I've heard cotton thread wicks.
I pin (because diaper fabrics stretch easily) with little binder clips or I put in a pin parallel to the stitch, in the seam allowance so I don't create little holes in the waterproof section of the PUL.
Have fun and post pics when you're done!