I just came across this in Ravelry. Not a free pattern, but it's so cute and I know that occasionally some of you are looking for baby dresses.
http://slumberland.org/wp/2008/03/15/pattern-golden-rose-sundress/

oh that is adorable! I LOVE the Slumberland book and everytime I'm in the bookstore tell myself I should get it....there's sooo many cute things in it.