First....You need stitcky stabilizer....Leave the backing on and hoop it.
Score the paper off (I traced a line inside the hoop and rmoved that part)
Then place the towel on to the sticky paper....do not hoop towel.
Next....You need soluble stabilizer on the front of the towel where the design will go....(I sprayed mine w/reposition spray adhesive).
Next....If you can print out your design, do so. Cut around the design and place where you want it to go on the towel. Take the hoop to machine and see if the needle is exactly where you want it to start on the design....
Very easy to do, but don't get frustrated at first...Takes practice.
Have fun
Karen