AutoPunch™ will read imported clipart files. It will not in most instances do an adequate job of digitizing lettering created in Word. If you save it in a high resolution and size up the design before you try to digitize it you can have better results.
The most successful results will be obtained when you use our software called "HyperFont" to digitize letters.
1. In the Wizard you definitely need to look at the design during the color reduction step.
2. Reduce the colors in the image.
3. These are the results after reducing the colors down from 5 to 2.
Here is the finished product.
