Hello.
I, too, did not realize your question was not answered. Oops.
I have never downloaded a free design directly to my USB drive. Just never did it. Usually, when I decide to keep a design, just drop it into my software program; which in this case is PED Basic utilizing WinZip.
From there, I save to my USB drive and then to the machine.
1. Plug in your USB drive to the correct port. Turn on your machine.
2. You then must press the corresponding button; which in this case, is the USB Drive symbol. NOT the Character Decorative Stitch button.
3. The design should now appear on your screen.
I purchased three (3) SanDisk USB drives and two (2) were defective. One of the defective ones worked for a bit and then not so much. I purchased all three in Wal-Mart. I have sinced changed my brand of USB drives to Staples own and all is well in the world of embroidery once again. My intent is not to bad-mouth SanDisk nor Wal-Mart.....just happened to me.
Good Luck with the USB drives...great way to transfer designs to machine.
Joan