Hi Barbara,
Congratulations on your new hoop! Yes, I would recommend using the 4x4 and extending it using a PAL (such as this one) or a ruler. Also, I'm sorry to hear that the rulers on your hoop are not great. If you need new ones, you can find them here. Thanks for reaching out! Please let us know if you have any other questions, and have a great day.
Leah W.
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Barbara S.
Wondering why there is not a crosshair file for 5x7 pes - do I just use the 4x4 and extend? I bought a used hoop and the rulers are messed up.