Find a TON of free designs and other great resources at embroiderydesigns.com.
You can purchase design packs, read embroidery articles and post in their embroidery forum. Even convert up to 5 designs/month into different formats for FREE, just create an account on the site. All designs purchased from the site can be converted to other formats for free, unlimited. After the 5 free/month, each conversion is just $0.99, or buy a conversion package for more savings!