Awesome Sue of La Femme Knitkita made a great tutorial for Photoshop Elements using my patterns. Find it right here!
She explains how to use layers and make transparent backgrounds to put together your own designs using my patterns (or any embroidery pattern file.) If you have my book, Doodle Stitching: The Motif Collection which comes with a CD of all the pattern files, this is just what you need to get started. I hope you find it useful!