I don't have a cutter, well I do but I don't know how to use it so I don't physically cut anything. I use CorelDraw x3 and then I separate the images out on that and line every thing up on the page and print from there. You can also separate images on Adobe Photoshop, but I haven't figured out that software enough to do anything else with it.
If you use chromablast ink and chromablast paper you can print on 100% cotton too. I printed something similar with the chromablast and didn't get any yellow in between images. I don't know, I have 4 printers, one for plain old ordinary printing, and one each for plain ink transfers, sublimation transfer, and chromablast transfers. Each uses a different kind of ink or dye.
My press is 12 x 12 and I do recommend getting a swingaway press rather than a clam shell one, just less chance of getting burned.