I don't digitize BUT will put you back on top for another go at it:)
I am not sure about your problem in 3D I have 4D and I do not have the scissors either, I believe that is an upgraded version like the Pro not just the basic, there is a D1 group on yahoo that knows a lot about these programs and you could check out sewmuch4retirement.com she has a lot of info on D1's you could even look there. She answers a lot of questions in the yahoogroup.
I have been looking into buying embrid for that reason if I had know about it before hand I probably never would have paid all the money I did for 4D. I would have been able to buy embrid and the digitzing program for the same price.
Wish I could help NMM but I know nothing about the Designer1. someone will b along that can help I'm sure. *