I THOUGHT I saw that you were from the UK, then I looked back again and missed it.
Sorry, I'm not sure where you'd buy your paper from there. There might be other members that can help you out there...
Yes, once you print your design (with registration marks) you will be able to take it to your cutter and cut it out. You'll need to add a cutting contour to your design in your design program (Illy, CorelDRAW, or ROBO Master Pro).
Also, for transfers for lights, you will need a carrier sheet to place your transfers on in your cutter. The CR comes with a sheet, but those sheets CANNOT be used on a heat press. For that you will need a carrier sheet like Magic Mask. Again, I'm sorry, I don't know where to get that or it's UK equivelent.
The C88+ (or D88 in the UK, I think) is one of the least expensive printers you can buy, but its inks are expensive. Most people buy bulk ink systems for their printers to keep costs down.