Upgrade won't work

OK, as you found out, you're probably not going to be able to do that until you have purchased the CE-250 upgrade from Singer, its dealers, or possibly eBay. You might think about joining a dedicated FB group like Singer Futura Fans -- they have the installation instructions in their Files section, along with tons of other helpful information.
Bottom line is, you CAN install your Futura software on you Windows 7 or later computer, but it takes a little info. I know--I've done it.

Hi,

Did you try reinstalling the software?And another thing did you face this problem before?

This is only available through an authorized singer dealer. Where To Buy Singer Products Singer Sewing and then do the update here CE 100 Software

try these sites

http://www.sewingmachinesplus.com/Singer-Futura-Upgrade.php

http://cart.jennys-sewing-studio.com/index.php?main_page=product_info&cPath=72_77_82&products_id=222

http://www.sewamazed.com/futura-upgrade-2.html

http://www.futura-support.com/products/ce-100/software

You can purchase an upgrade for the 200 to bring it up to the 250, so it works in that direction. I'm not sure the 250 would work with the older 200 software, though.

Most probably you have a pc with Windows 7 or Windows Vista/XP 64 bit that are supported since latest Futura software versions. For 64bit support you will need a version 3.0.0.7 and higher, for WIndows 7 support a latest update 3.0.0.9

http://www.futura-support.com/downloads/ce150.html

Hi I had the same problem sent question to Singer and this was their reply

"Do you have Vista 32-bit or Vista 64-bits? Unfortunately the CE-100/200 machine will not be compatible with either Vista 64-bit systems or the newest Windows 7 computers. The CE-100/200 will only be compatible with Windows 98 through Vista 32-bit operating systems.

This appears to be a hardware issue and not something that we will be able to create a patch to correct. Drivers necessary for 64-bit operating systems are not compatible with the CE-100/200 machines." so I guess we are SOL

If you have upgraded to Vista, there have been considerable troubles with all makes of machine in the last few years.
You will probably need to find an upgrade to the software (generally free), so contact Singer in your region.
Here is their Global Site Link if you need to find a contact locally to discuss your needs.

I had the same problem. I called a singer service center and he told me that was a major issue with the futura....no software made for Vista. I was determined to find a solution and finally found a patch. Here you go: http://www.futura-support.com/downloads/patch.htm#

Join:
http://groups.yahoo.com/group/FuturaEmbroidery/

They have the answer.