One of my favorite blogs, &Stitches is offering a competition for their readers - show our embroidery tool kits!
My favorite embroidery hoops are the Q Snap frames. I think they are easier to work with. If I do use a normal round embroidery hoop I always use a plastic one, even though I have a ton of wooden hoops, I choose plastic every time. (Update February 2016: It's funny how things change. Since I posted this back in 2013, I switched to using wooden hoops and now never use the plastic hoops!!)
DMC embroidery scissors. I use this pair the most.
For transferring patterns, I use the Sulky Iron-on transfer pen with tracing paper. For smaller projects I will use Quilter’s Choice transfer paper. I like how it doesn’t smear and is easy to transfer onto the fabric.
I have been buying Dritz embroidery needles and I use that little purple square pincushion to hold my needles.
The pincushion is nothing fancy – I made it out of some felt and put some Velcro on the bottom so it will stay in place on the couch arm.