Have you tried doing a test run with 2 sheets of stabilizer one going the length of the hoop and the other going the width of the hoop? This might stop the puckers. I am not an expert but it was a hint I was given one time.
Looking good with your idea so far.

Toogie, starch your fabric before you stitch. It will help. The font you are using looks dense, could you try a less dense one?

I would starch and use more stabilizer otherwise such a great idea

This will be fabulous and a family heirloom when it is done! Thanks for all the additional information. I learn a lot from you. As they say...you have to learn from the mistakes of others, you won't live long enough to make them all yourself.

While heavily starching the fabric will help, in stitching it out, once the starch is washed out, the embroidery sometimes will scrunch up around the lettering. If you use a cutaway stabilizer, the fabric will carry the stitches better, but leave the project too stiff and add weight. What I usually do is to add two layers of washaway stabilizer on top and on the bottom. This gives the stitches a little extra room to relax and not bunch up.

On the bottom, I use temporay spray glue to hold the layers of wss and hoop it and the fabric. I do not use any glue for the top two layers and just lay them on top. I usually just pin the wss to the top. If you want to use up wss scraps, you can use them for the first top layer, but you need to put a solid piece of the wss for the very top layer. The scraps can get caught by the machine's foot if you us small scraps and ruin your project unless you sit right there and fix the problem immediately if it happens. It doesn't matter if the wss gets little folds or bunches in places. It just washes out.

I find that each machine has its own personality. What works for one machine or works for me doesn't always work for others. Type of fabric, brand of thread, how the machine stitches, the density, etc. can make very small differences and shows up as a problem for one person, but work beautifully for another.

Well done!!Beautiful!!!!

This is going to be one beautiful quilt when finished!

A great start. Thanks for sharing, I love reading all the suggestions, maybe I can remember them when I get a chance to embroider again.

I forget to starch also. I've used layers of stabilizer but think to myself, this ads to the bulks under the letter stitching also. What I think happens is the stabilizer itself 'shrinks when pressed' This happens to me occasionally also with the puckers but only after I press when done.. Can you put it in software and change the density just a tad and then save the design. I've also tried lowering my top tension a bit, this seems to help. I really like using that tear away/wash away stabilizer so you don't cut away and still see stabilizer behind you fabric in a show thru. Everyone has their own little tips and tricks. Trial and errors, more errors on my trials. But this is going to be a treasure when done for sure.

Toogie, the quilt will be such a treasure you need to make 5 so each child can inherit one. ;-)
It is going go be beautiful and a treasure as others have said. Cannot wait to see the whole..
Have enjoyed the sharing of others as to what they use. Thank you for getting the suggestions rolling.

Very good beginning Toogie!

May I ask the name of the font and where I may find it? I have to stitch a wedding couple name and date of wedding in tiny font. I would appreciate it.

It's lovely. What a great start. I hope you keep editing this post so that we can see it progress.
I've had the puckering happen on small fonts also. I found that starching and using an iron on tear-away helps. I used the liquid starch that you put in the washing machine and went really heavy on my usage. Then I hung them to dry and ironed and then stitched.
I wish you good luck on this, but it's made with so much love I wouldn't even loose sleep worrying about it especially being on a quilt which tends to pucker after washing anyway.

06-26
I have taken Cuties advice and doubled my stabilizer, one going one way and the other, the opposite way.
I used a basting frame to secure each hooping, as I only have the 5x7 hoop and this is about 7 inch x 7 1/2 inch. I think I did better aligning the two hoopings this time too.
I have also starched my block, before embroidering.
I restitched the same block in black, as I have decided to stitch all my blocks in black lettering. See if you can tell a difference with puckering.