Colleen, there could be several reasons for this happening: Are you putting more than one design in the hoop? Have you hooped your stabilizer, correctly? Did the design slip in any way from the beginning of the stitching? Try adding another layer of stabilizer, if that helps - that is great - if it doesn't - then there is still a problem. A dense design will have more problems doing this - than will a less dense design. Try putting a couple pins on the top side of the hoop - between the stabilizer and the hoop - to secure the stabilizer from slipping - some other's might suggest using something around the hoop - so that the stabilizer will not slip, too.
I am having the same problem and used 2 layers of stabilizer,
I made a santa on a sleigh and everything was perfect-untill I rinsed it and the edge started to come off.
I will try the pins,
Thanks Shirlene! I will have to try the pin idea. Even though I hoop the stabelizer really well, I think it must slip some because it seems to end up puckering a bit around the edges. I will deffinately give it a try!