Source: Make: DIY Projects and Ideas for Makers
Desktop cutters, like those made by Cricut, Silhouette, and Uscutter, are a popular craft item. Pairing them with an inkjet or laser printer opens up a range of options like custom stickers, vinyl decals, and even heat-transfer vinyl designs for fabrics, to decorate and organize your life.
SOFTWARE
Some desktop cutters use proprietary software, while others let you import many file formats. Either way, it’s important to understand the difference between vector and raster images. Vector images use paths and points to display and transfer your design. They can easily be sized up or down because the shapes are dynamically scaled. Raster images are made up of a set amount of pixels in predefined spaces, so they are not easily scaled up without losing detail.

Desktop cutting software tends to prefer vector files because they easily translate to cutting paths, but most software can also define cutting paths from raster images by tracing areas with great contrast either by hand or automatically.
TIP: If you’re doing multiple layers, include orientation marks in your design, such as crop marks or top/bottom marks, to help you easily align and place each layer.
VINYL DECALS
Cutting standard single-color decals is easy and fun, but layering vinyl decals allows a ton of creative possibilities and lets you use the many color options available, including glitter and holographic treatments.

Cut your primary layer and use tweezers to pull out the excess material, or pin down delicate or detached areas a process called weeding. Apply transfer tape to the weeded design, and use a squeegee to firmly stick the transfer tape to the vinyl.

Lay down the first layer in the position you want the final design, then peel back the transfer paper and discard.

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