ok, first you should use a stablizer under your project, it will help you not get puckers in the stitching.
you can use whatever thread works well in your machine.
and as far as actually designing/creating the text...more than one line and all of that...
you need to get your book out and read the instructions for your machine. although many are similar they each have their own 'perks' so you need to see what the instructions say for writting a sentence or paragraph.