Update: I got a tear-away stabilizer and lowered the pressure on the presser foot and my letters are coming out great. Thank you all SO much for helping me figure this out!

I am so glad you got it to work - will we see pictures?? lol??

Betty, I'll try to post some pictures eventually. First I'll have to study up on how it's done. lol

I'm glad you have resolved your problem. I always use freezer paper pressed on what I will use to create the label. It works like a dream.

That's good to know, Marsh. I've only used freezer paper to run fabric through my printer. Thank you; I'll keep this in mind!