Pros:covers the vinyl mattress pad, don't fade, quilted sheet is soft
Cons:regular sheets are scratchy, scratchy, scratchy (stiff too), quilted sheet pills in the wash
The Bottom Line: The only reason I recommend the regular Graco sheets is because a scratchy sheet is better than no sheet. Go for the quilted.
When my first daughter was born, I didn't register for a Pack 'N Play because my mother had one that she had purchased for her home. She often babysat for my nephew and needed a place for him to take naps or just plain be safe when she needed to do personal things like take a shower or use the bathroom.
Since my parents were moving to Florida, they no longer needed a Pack 'N Play. So, this then three year old Pack 'N Play made its way to my living room. If you are familiar with this type of travel yard, it comes with a vinyl covered mattress pad which is also the "base" of the contraption, fitting inside of the frame to give you a flat surface upon which your baby can lie down or sit or stand up.
While you can put your baby directly on the vinyl pad, I wouldn't want to. Vinyl is not a comfortable surface for adults so I wouldn't expect it to be for children.
That Graco Pack 'N Play came with a sheet when purchased - a white and blue striped seersucker. Maybe my mother did something weird to it in washing (always a possibility as my mom can shrink anything!) because this sheet is quite soft.
I did purchase extra sheets for the travel yard and none of them are soft, even after multiple washings. I must be doing something wrong. For some reason, it seems as if the sizing in them has never washed out because these sheets are as stiff as boards. They measure 27"x39" and are a simply polyester/cotton blend. The care instructions say to merely machine wash and tumble dry. Oh, and don't use bleach.
I've followed those directions. I've washed them on hot and in cold. I've tried fabric softener. I've changed detergents. Those sheets are still stiff and scratchy. They sure do look nice and hold both their patterns and their colors despite all of the washing. It's not just the patterned sheets (Princeton and French Bear) but the solids too (Navy and Candlestick Cream).
These fitted sheets also don't wrinkle which should be obvious since they are rather stiff. They are easy to wrestle onto the mattress pad. I haven't seen any problems with shrinking or distortion. I think the sheets are part steel because they literally look almost exactly the same as when they were unpackaged except the creases have flattened out.
Because of my issues with the regular sheets, I purchased a Graco Quilted Pack 'N Play Sheet for my second child. It's padded and fluffy. While everyone says you need to keep your baby away from soft bedding, I saw no reason to shy away from these sheets once my child could turn over. I find them (and my daughter finds them) more comfortable than those scratchy, fade-resistant regular Graco Pack 'N Play Sheets. The quilted sheet has batting inside of it and it's a little more difficult to get on and off the mattress. It also has pilled in the wash and just doesn't look spiffy after a dozen or so washings. The color (a deep navy) hasn't measurably faded. It's very soft and my daughter seems to like it, particularly during the colder winter months.