The only thing I can think of is that the design is either rotated, so that it's actually 4.63 X 8.60 or it's positioned near the edge of the hoop so that part of the design falls outside the embroidery area. I would send Urban Threads a note and tell them what's happening. Might be something wrong with the file. I've had my machine for 10 years and have ordered from lots of companies and never have had a problem.