Hi! New to the board and I just have a couple of questions regarding the Brother SE400 as well.
When is says it has a 4"X4" stitch space, does that mean that is can make a picture/logo up to 4"x4", as long as you have a big enough hoop?
My desire is to purchase a machine that I can scan a logo (very simple. One color, no shading), digitize it with the PEC/PES software, load it into the machine and embroider a 4"x4" logo onto a jacket or backpack. (and make patches)
I believe I need to buy the machine, and the $99 software for my computer. (and a bigger hoop so that I can use the whole 4X4 space.) (I know there is other stuff. Stablizer, threat, etc)

Now... My question... Which part of this seems like fantasy? ;) Or have I got it nearly right?

I've been sewing and quilting for years and I briefly had a Husqvarna embroidery machine that was loaded with 800 stitches, but was not programmable.

A friend who has an embroidery machine in the past, thinks that this would be too small for me, but I just want logos that can fit like on a chest pocket. I don't want whole shirt fronts..

If someone is willing to take a look at the logo, let me know if they think it would work?t

Thanks. I'm new at this whole process and I don't want to drop a bunch of $$ on something as I don't think I'll use it for many things, other than this logo.:)

I have this machine. I love it. For the price point I'd say its unbeatable. Having a speed control, automatic needle threader and automatic thread cutter are fantastic at this price point. It has a bobbin thread sensor to warn you when it's low. It has pretty much all the stitches I've needed in my quilting so far. I have the walking foot for it and I have had no issues whatsoever quilting a quilt sandwich with it. I just recently finished a large lap quilt on it. Mostly walking foot quilted with a little free motion stippling. About the only drawback is throat space. It is small. It does get frustrating the larger the quilt you are working on. However I've been starting to learn free motion and not having to rotate the quilt makes it easier to handle a larger project. I know someone complained about using the walking foot and seam allowances. Well I too had that issue until I discovered the feet are marked. There is a red line for 1/4" from the needle at center. Since I discovered that my bindings are now dead on. It's also marked for judging distance to stop from a seam, again useful for sewing on mitered bindings. Anyway like I said I've had great results both free motion and walking a sandwich. I did find I had to increase my tension quite high to get good results.
As far as embroidery. It's pretty good. I don't do much. Mostly little embellishments on gifts and quilt labels. You can't do anything bigger than 4" x 4". You can digitize whatever you want if you have software. It tends to be exorbitantly expensive for digitizing software. Way more than the cost of the SE400. I paid $99 for the Card reader and basic program to transfer designs to my machine. But you can also hook it up to a windows PC to transfer patterns. I do have a ipad app that cost about $5 and is supposed to be able to digitize a picture into pes but so far I can't figure it out. But then I haven't honestly tried to fool with it for longer than 5 mins.
When I first got it I was working from a list of requirements from a old pro quilter. Her machine is a baby lock ellisimo. She said look for a machine the cuts the threads automatically. It helps tremendously in piecing. Look for speed control. And a needle threader is nice. This one was by far the most affordable with all those things. And honestly it's a little workhorse.

Close up of free motion and a bit of walking foot stitchin

http://i.imgur.com/qSsYVZZ.jpg

whole project completely sewn on my se400. Made with good LQS fabrics. Batting was a low loft fusible poly.

http://i.imgur.com/z823tNk.jpg

back shows quilting a bit better also I used the embroidery module to make the label. A downloaded pattern plus a font that is in the machine already.

http://i.imgur.com/qUfX446.jpg