Joeysnana:
I'm a bit late seeing this thread but has anyone explained that every embroidery machine has a set stitch limit for any one design. In other words a detailed design area might fit in your 5 x 7 hoop but if it exceeds the number of stitches that your EM can do, then it won't read the design. EmbLibrary.com has a Help section which explains this so much better than I can. They also have a list of many different machines and their stitching limitations.
Have fun!