Okay I need some help. I was planning on buying a Babylock sewing/embroidery machine all in one for about 700.00 but the largest embroidery it does is 4x4 and looking at available patterns I don't think I will be happy. So I'm taking the boards advice and buying two separate machines. I want the Grace for my sewing machine but not sure what to get for embroidery. I can't afford a larger size Babylock or Bernina. I need something around 400.00 (or less) than can embroider up to 5x7 and I would like it to take a "flash drive" --is that what they call the memory sticks --since the Babylock I was going get offered that and I like it. So brands, models or any advice of what I should be looking at or for?
Thanks.

I have been loking for the same thing! Will be watching to responses you get!! :D

I think with those funds you will have to look for a good used one. Check you LQS or dealers in you area. You can purchase used that do have a warranty on them. Possibly some lessons or at least help with the purchase.

I agree that you should get a machine that does larger designs. Mine goes to 5x7 designs and I am always wishing for even larger ones, but the price of a larger machine would be too much for me to afford. After you buy, try www.emblibrary.com. They have inexpensive, but good, designs. Also they offer two free designs a month and great sales. I have tried more expensive websites and have not been as happy with the quality.

You might look at Janome 350e--It's about $200 more...might get for less on ebay. There are a couple of new ones being bid on now. (Might also make deal with locals at this time of year. That's probably better because of service) I don't have one, but have friends who love it and it gets good reviews. In general, Janomes are great machines

I have the machine that does the larger hoops, mine does 3 different sizes and I find myself using the 5 x 7 hoop the most. The only thing I wish on mine is that it cut the jump stitches.
I have a Brother 2500D and purchased it used.

I got a janome 9500 used at my super fantastic dealer. Got it for super cheap and it is the 5x7 hoop. I LOVE it! Definitely get the biggest hoop u can afford no matter what brand u get.

Is there a particular format to look for or better with more designs available. PES is the only one I am familiar with is there something I should look for or stay away from as far as the actual program it uses.

Me too.

I don't think one format is better than another, really. Its just the "language" each machine understands. What makes each design good or bad is the digitizing of going from drawing to embroidery design. Most are really good, but there are some whoppers every once in awhile. There are a lot of posts here about different desing sites. Just do a search using the link at the top of a page.