Its a good thing that embroidery machines can help.  The specific instructions are in your Manual, but here is a quick/easy recap.

1. Place each of the needed letters on your machine.  You can do this via your disk or USB. 
2. Place the first letter into the 'edit' portion and move it to the left.  You will be able to adjust it later.  Exit 'edit.'
3. Place the 2nd letter into 'edit' and move it over toward the first letter.
4. Continue until all letters are in the 'edit' section.
5. Arrange as you want it to sew out.
6. Each letter will stop at the end of its run, so you will be restarting frequently (relative to the number of letters).

This is why Alphabet Express is such a popular software.  When you consider the time saved, the spacing issues and the over all convenience, AlphaX is one great, easy to use for creating words.   This software is one great item and you will find yourself using it often.

I have even done a "paragraph" with AlphaX!!!!! 

Pat, The Avid Embroiderer

In the Edit window - there is just Edit or Sew - you need to place your first letter.  Let's say you are embroidering "Mom."  Take note of these things:

• You notice the arrows which allow you to move the letters or designs in a specific position. 
• These specific placement in inches or millimeters. 
• If you are doing just a single line, you want to be sure that you do not move the letters up or down, just side to side.
• I like to place the center letter first.  That is a personal preference only.  You may place your letters as you will embroider them.  The reason I use the center is that there is always some 'push/pull' to the embroidery.  Centering the middle letter makes this less of a problem.
• I would leave the 'o' as it is, not moving one way or the other.
• Next, I would place the "M."  This is more tricky because the "o" is perhaps 1/4" wide (6mm) whereas the M will be wider, perhaps about 5/8" wide (14mm).  As you embroider, you may find that being more acquainted with millimeters rather than inches will be of great use to you.  Keep in mind that an inch is about 25mm.  Metrics is more accurate than inches, and when you learn it better, you will find it is easier to work with, especially in embroidery.
• Place the "M" to the left of the "o" and use the 'hoop' icon in the upper right corner to see your placement.  Script fonts can be difficult to place because a letter like "M" or "W" can slant a long way.  Visually, you need to see it through that icon for best placement. 
• Lastly, place the "m" to the right of the "Mo" and again, use the icon to see your placement.  You can magnify that picture using the icon on the bottom left in the view of your placement. 

Others may have methods that differ.  What works for me, may or may not work for you.  As I noted above, this example is why Alpha Xpress is so popular.  There are other software packages that will do the same.  Frankly, for the price, my preference is Alpha Xpress. 

Machine embroidery is fascinating and frustrating.  It takes time to learn the art.  The demo you probably got made it look like you just need to push a button.  Keep in mind that they make sure it works that way in order to sell the machine - - just like the gadget guy at the county fair.  It is satisfying when you start to get the hang of it.  I personally cannot sew at all.  But I can create a lovely embroidery.  See some of my work in my blog.

Pat, The Avid Embroiderer