If you want an embroidery only machine, for that money look at the Janome MC200e. The hoop is a little bigger than the standard 4x4, it's about 5.5x5.5. It's a great machine. I love mine and don't find it as limiting as I thought I would. I still use it a lot. If you can manage to spend a little more, look at a Brother PE770 or the Designio 820. I was looking at these when I lucked into a used Janome MC350e for a great price. I love it too.
Cari