I got some freehand drawing design and want to digitize them. When I started to digitize it, I am getting too many colors. This is making havoc in decent designing. I had tried 2-50 numbers with freehand (by black marker) etc. but nothing is working greatly. I also tried color pencils. Is there is any way out? I also got PES format design but I am using JEF format. I am also trying to convert this.

However, I cannot convert them.

You need to explain the name of the software you are using. Without it, we cannot help you.

OK, it is Digitizer 10000 Janome 350E machine.

Is that old version? I used it quite long ago.  Do not go with auto digitizing with this Digitizer 10000 version. Auto designing is for BMP images (including JPG) without color graduations. You should go for manual digitizing tools. I also do not have any manual video for this Digitizer 10000 version. No worries! 

Really! I got this machine since long and never utilized these stuffs due to my null ideas. I tried out falcon free hand. It turns out great for me. As I use this often, I preserve this file.

350 E and Customizer 1100 have also got same problems. Previously, I thought of scanning the logo of business card to get a clean outline to digitize it. It looks like tile mosaic drawing and force forever for me to clean it. 

Hey! you need full digitizing tools in order to digitize. Customizer is somehow narrow. Scanned artwork (unless scanned at a high resolution) won’t fit into auto digitized. Artwork should be clean to use it and it is applicable to all digitizing software (doing auto digitize). Go to manual digitizing. Although it is hard to learn initially, it is probably the excellent options for you.

I am very confused about digitizing program and searching for ideal solution. Is there any digitizing software that works with my MC 9700 ?

Digitizer 10000 is so old and hard to run current version MBX 4.5. In cheaper rate you can get Digitizer Jr and able to upgrade it. By the way, it is not stylish but it is easy to use. 

Digitizer 10000 is out of the market and a new version is on the market. You should always buy these products in the dealer rather to buy from any other persons.