I had amazing results by using a 50 wt cotton thread. It looks like the font is too dense for the fabric. I would try another one with a good stabilizer and wss on top.

Have you tried another font for this sort of article Steph? Looking at the letters here I see the U also has stitch line issues. I personally do not use cut away, but on babies clothes use a very lightweight stabiliser. I would still use the WSS on top so as the stitches don't go too deep. I hope someone else comes along who has more knowledge than me. Love Chris

P.S. A big Aussie welcome from me, Chris, Newcastle, Australia.

When I experience this, it is usually due to pull compensation....I don't know how to remedy it without digitizing software......I usually run a 2.0 pull but this looks like it needs to be 3.5 or 4.0.....Martine can explain this in much better detail and I am sure she will be along sometime today....

Your 40 wt thread should work fine on this. It's what I always use on this type of knit. I'm with basketkase on the pull compensation. I don't know if you have the ability to adjust that with your software or not? If you are hooping the knit, it's possible that you have slightly stretched it there trying to get it taunt in your hoop. That would also cause the distortion you are experiencing. Maybe spray your stabilizer with a temporary adhesive (I would wash garment before delivery to babies unit for caution) then lay it on top of the hooped stabilizer and pin as closely as is possible around the stitching area and see what happens.

Is it possible it is in the digitizing? Can you edit? If you can edit I would get rid of the stitching around the font or edit it so it will not do it by moving the stitch points in a little further. I like the design it's perfect for what you are doing/Lillian

I agree with Basketkase (Vicki)...looks like pull compensation...it could also be caused by your stretching the fabric when hooping or the fabric stretching when stitching...you said you had a problem with the block font you used before so I sent you one I digitized...was it your original one or the one I sent you with these letters? I usually use a fusible tear away or a temporary adhesive spray to stabilize the knit fabric and prevent the prevent knit fabrics from stretching when stitching...if you also had a problem with the design I sent you, in that case I would say it was your hooping and or stabilizer...

I also googled more embroidery places here in Columbia MO where I reside..turns out there is an awesome place called Satin Stitches...so I'm trying to get a class there - they are busy too!! However, she looked at the back of my work and thought it was the tension.. I'll post the back for you..... I'm totally determined to figure this out. I'm feeling kind of inadequate so if I may.. I'm attaching a picture of something I can actually do.. which is make beads.. :) Thanks for your patience. ps... handmade glass beads at my torch, kilned annealed and strung for wear. : )