Designs are specially digitized(created) to be Free standing lace embroidery. This doesn't look like it would be but I agree with marybrace, your manual will tell you if it is. Stabilizers are a whole topic in themselves. There are literally hundreds to choose from. This is where I get mine. If you scroll down to the middle of the page, there are links to three articles that are very helpful
http://www.allstitch.net/department/....cfm?killnav=1
Also, if you got your machine from a dealer, take all the classes on using your machine. ask lots of questions. Terry cloth towels and knit Tshirts and Sweatshirts are all special cases that require different needles and backings.