I'm more of an Illustrator person, the only downfall with that is the colors are more "flat" then in photoshop. The pro to is is that it only takes one file and you can make it as big as you want or as small as you want(man I love vector files).

Now if I can get my hands on a vector file, I should be able to translate that into an embroidery file, if you want hats or T-shirts done at someplace like Embroid Me. I have the machine to do all that, but shirt placement is not my strong point and plus it would take me longer to get it done compared to someone whose job it was to do that, but I can make the file, if I have a vector file to work with(really the main reason why I starting using Illustrator).