Ann the gran used to have quite a few free emboidery designs, but since the site went commercial the free designs seem to have dwindled.
http://www.annthegran.com/The Machine specific sites also have a few designs, they change them maybe monthly (do a google search for the maker, bernina, brother, viking, etc) The secrets of embroidery site also has some free ones, you do have to enroll for these.
http://www.secretsof.com/embroiderytips ... esigns.htmHere are some disney designs from Russia, probably illegal
http://www.needlework.ru/dysn4eng.htmGoogle is your friend, and you can find all kinds of emboidery designs using it -- free and the nicer paid designs.