Small Embroidery Machine

I am looking to start producting small 1.5 inch buttons to that will glue onto badge reels with custom designs.  The designs will be small and have embroidered initials and lettering using CUSTOM fonts...some may be small designs from illustrator and photoshop.  I am also looking to make small designs that will insert into coffee mugs and other items.

I need an affordable embroidery machine that can accomplish these tasks please include photos of the machine and details. I'd also like to see some sample embroiderys.

Thanks