That's the question posted Friday in the comments section under one of the articles here in TheBobbinBuzz. First - I want to thank Rose for asking the question because most people wonder the same thing when they're just starting out in this hobby. I know Holly and I wondered the same thing when she was getting going.
I wish I could say "Just click on this and it's done" but... it's not quite as easy as that.
You can "convert" a picture from jpg format to another picture format (like gif) by using graphics editing software, but to turn a picture into an embroidery design there's more to it than a "conversion". The process is called "digitizing" and it's where you use the jpg as a guide for where you'll put stitches with your digitizing software.
Digitizing software costs anywhere from $500 on the low end to $2,000 on the high end for "home" software. For commercial digitizing software, add a zero to the end of the high-end homed software! It costs from $18,000 and up and includes a few extra features.
Once you have the software, you have to learn how to use it. Just as buying Photoshop didn't make me able to draw instantly, so too getting digitizing software won't give you the ability to convert a JPG to a PES file instantly, but if you apply yourself to learning to use the software, it can be done.
If you're a member of ArtisticThreadWorks you can read a series of articles called... "Buying The Right Digitizing Software". It's a 5-part series of articles and starts on this page... http://www.artisticthreadworks.com/members/1817
-- Larry