I have 3D Pro and Embird. I like Embird because it's so easy to use, very versatile and far less expensive than the 3D (I'm still using that instead of the new 4D). You don't have to buy all the add-ons at once, but can add them as you progress and want to do more - like photostitch or cross stitch. The article Meganne mentioned in a post the other day - Anatomy of a design - is a must-read if you want to take digitizing seriously. It tells you all about manual versus automatic digitizing, order in which to do things, and so on and so forth. Everything you ever wanted to know.
Cindy, I use Embird and I love it! They have a 30 days trial, you can download from their website. This is ok for home digitizing, I think. If you want to go for professional one, I heard a lot about Wilcom, watched their demo, it's fantastic. I hope this helps. Love, Yoriko
I too am looking at digitizing software so i will be watching this post for good info. Thanks for asking the question.
I personally use Embird Studio. It allows you to add parts if desired piece by piece. It is a little harder to use than the second one I mention, but there is lots and lots of resources out there including lessons, yahoo groups and help. The second option is Generations which is fancier and somewhat easier. There is help out there for it. It is more expensive than Embird, but very, very nice and has more bells and whistles. I know a lot like Berninas too, but it is not for me.