Works just like you said. You have to convert your embroidery design to a .exp format. Then click on embroidery library, click import, navigate to design location, select it and import. Just remember that if you resize the embroidery file to fit a block that it does not affect the actual embroidery file and you would need to resize it accordingly when stitching out. But it is helpful to visualize what your quilt will actually look like. I love EQ7!