I agree about using Floriani products for embroidery. I have tried every brand there is I think and his products are absolutely incredible.
Also go to the different sewing machine websites (Janome, Babylock, Singer, etc.) and they will have free designs to download (not many but usually nice).
My favorite place to get designs is ---- ME! I love to digitize my own stuff and have done quite a few custom jobs. I have also done some labels for some of the members here.