Best advice, test any design first on a sample piece of fabric. The same type if at all possible. Some designs are just off. Unless you didn't have it hooped tightly, or it came unhooped, I'm thinking it's the design itself. T shirts can be difficult to embroider on too. I ususally use iron on stabilizer for them, and sometimes overlay the top with washaway too. Oh, yes there is a space key, it looks like a small line on the page with the alphabet. Hope this helps.