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So here's a down and dirty example... I type the letter W, increase it to 150 pt or so, fill it with a color, outline it with 8 pt or so.
Now, let's say I want to cut it out... this is where I'm lost. I already have the default color set up for the Contour cut line, so that's not an issue.
If you duplicate the letter, then click no fill so that you have just the outline, then go to your "arrange" menu at the top and drop down and click "change outline to object". Then go "Break apart" from the same menu. You will now have two objects..one the size of the outer line from the outline that became an object ...if you get my drift and one the size of the inner. You should delete the smaller. Then click on the object and add an outline (which can be your cutline colour etc) and go no fill. This will then sit over the letter giving you a cut line that is at the extent of the outline on your letter......
And don't forget to put that cut line on a separate layer!
If your outline color will be same as your fill, you wouldn't need to duplicate the letter, but then the entire letter should go on the cut layer so it will print and cut.
Need help with Contour Cut in CorelDRAW X4 
