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Ok I created a layer style that turns the words black with a color burn, then starts off with a light stroke, looks like the rest is very subjective to how the final look is needed, so each image will have to be dealt with on a case by case basis, its going to be grueling but at least now I understand how the process works, also its probably a good idea to keep the red background there, if I miss a speck of the fill the cutter will mark it as transparent and attempt to cut the transfer in that spot, a big no no. here is my second try, a bit cleaner

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