Hooray! It can be done. Here's the response on the EQ Forum to my question:
"Oh, yes. Since you say you have the Bernina software, you're in business.
With your embroidery design on the Artistic mode worktable, go to FILE > Save image as and choose .PNG as the file type. This will save the stitch-out without a background and preserve the stitching and the coloring. The coloring of the design is especially desirable here.
Import the design to EQ7 through LIBRARIES > Embroidery Library > Import > Add to Sketchbook.
You will be able to place the embroidery design on Layer 3 of your quilt layout.
Hope this helps!
BarbVlack
EQ Author and Teacher"
I am currently designing a storm at sea themed quilt in which I plan on mixing both the traditional storm at sea blocks and an appliqued/embroidered/pieced picture. I am hopeful I will be able to design the tall clipper ship itself for applique and embroidery of the rigging and details in my Bernina software for making in the jumbo hoop. I am blogging this on my personal blog...we'll see how it comes out. But however it does, I am sure I'll be using these two pieces of software together in the future a lot.