Use the PhotoStitch Into Rectangle 
option to create a new embroidery in the PhotoStitch Wizard that is a best-fit to a rectangular area you draw.
Click PhotoStitch Into Rectangle 
and the mouse pointer will change to the draw rectangle pointer 
. Click and drag on the work area to draw a rectangle of the desired size. When you release the mouse button, the Choose Embroidery Type page of the PhotoStitch Wizard will appear.
If the rectangle is wrong and you wish to try again, click Cancel when the PhotoStitch Wizard appears. Then click PhotoStitch Into Rectangle again.
Choose the desired design type, then choose a picture and step through the rest of the PhotoStitch Wizard. When you Finish, the new embroidery will be placed where you drew the rectangle, and will fit the rectangle proportionally, depending on the picture shape. Use Save 
to keep the new embroidery in multipart .vp4 format, together with any other embroideries in the work area, and use Export 
to save in other formats, and optimized for stitching.
Shortcuts
-
Create tab, PhotoStitch Wizard Drop-Down:
-
Keys: Alt, C, P R