Tape you piece of paper to the table you're working at. Center the embroidery hoop over the image and begin to trace. You need to trace lightly so that there isn't a lot of extra pencil lead on the screen. This step can take a few minutes, depending on how detailed your image is. If you are tracing letters, be sure to make the lines nice and straight.
Tracing the design may be difficult for some people. If this is the case, you can print your design out on self adhesive paper and it cut out. Self adhesive paper can be found at most department, office supply and craft stores. Center your cut-out on the screen and stick it down, making sure the edges are well-stuck.
When you are done tracing, apply the Mod Podge.
(Need help? Ask in the forum.)