the upgrade is $500. It has stippling option that lets you add stippling to any embroidered block. It also has a new appliqué function. You can now scan in a regular hoop for the design center. They have added 4 new stitches for outlining in the design center. If you want it to be wireless you have to buy BES 4 its about another $1000. The Dream 2 is about $12,000. I have the Dream 1 and just added the upgrade. I love my machine. I did not do the BES because I will never use it. The Dream Machine does monograms just fine without BES and USB sticks are not expensive. It takes about 5 minutes to install the upgrade. I use the scanning option a lot. The upgrade comes with a 9.5" hoop. The hoop will not be available separately for a year or so.