Yes it definitely cuts vinyl but I am not sure about the flock as I 'don't do' flock and even though I have some samples of it here I have just never have the time to try it out.
I imagine it does though. Here is the link for Target's Craft Robo
Official Graphtec Dealer | Target Transfers
I have just looked on Magic Touch and do not see the Craft Robo on their website any more. I know when they were trying to sell it to me they told me I had to buy it as a package including laser printer plus a half time tuition at their offices.
Hence I bought it from Target as they just answered any queries on the telephone. It is simple to use though
It does come with it's own software and I believe all software can be used with it. Best ask them though... I don't do technical queries