You can do a lot with it but a lot of nice designs are bigger than 4x4 which means you have to split them to use them. But if you are satisfied with 4x4 you can have lots of fun. There are lots of sites that sell really nice designs you can download. As for making your own designs you would need software which is expensive, but with all the sources out there i don't feel the need to create designs. I would say if you already have a good sewing machine and are really interested in embroidery to go for at least the pe-700 with a 5x7 hoop. It cost a couple hundred more but you can do more with it like a lot of the in the hoop designs require a 5x7 and those are fun to make