I use SewWhatPro from www.sandscomputing.com to make my labels. They have a free trial for 30 days and you can do a lot with that program. It will resize your design for you so it will fit into the space you want.... but depending on how much you want to put on the label you may find that it won't stitch out well because it may be too cramped. The website I gave you also has tutorials on it to show how to resize and merge. They also have a great yahoo group that will answer any question you have on their products.