I have the PE780, which I believe is virtually the same machine as yours and, trust me, I've had to use this function a few times! When you are on the screen where it shows the embroidery progress, there should be two icons in the lower right, one is a needle with a plus sign, the other is a needle with a minus sign. The plus sign moves the needle forward in the design, the minus moves it backward, one stitch at a time. If you press and hold it will move it like 10 stitches at a time. Hope that helps you.