Embird! Embird! Embird!
It is the most reasonably priced software out there, easy to use, and you can convert from one format to another in the push of a button. There are wonderful Yahoo groups to support the software (I belong to AbsolutelyEmbird) and the really nice thing is you purchase just the modules that you are ready to use. I have never done any digitizing so don't need that part of the software but Embird Manager does everything I think I will ever need. It allows you to edit and combine designs and a whole lot more. Have fun with it! You can add other modules as you need them. Ann in TN