I just messed up a 1300 stitch design on a kimono I'm working on, so I had a similar experience. I use a seam ripper and carefully cut up the bobbin thread and interfacing then pulled the loose threads out of the front with my fingers. I had to be really careful not to slice into the fabric with the seam ripper.

The biggest problem is that the embroidery machine may have punched so many holes in the fabric that it looks perforated and beat up after you pull the design out. I massaged the fabric until the holes were less visible then tried to put the design back on in a way that masked the worst of the perforating.

Go to: www.embroidery.com The: Wahl Peanut Stitch Remover. Also: On the left side of the Home page go to: Video & Project Gallery -
Choose: Peanut Stitch Remover Video - This video shows you exactly how to remove stitching safely from Embroidered Items. Really Cool!
If you don't like the price you can find it for less online at Beauty Supply Stores. Good Luck. nanablue