This is a question that pops up every now and again
Here's a tutorial done I found on Pazzles site it is a Really a great read if you are diving in to cutting fabric for the first time (the project is adorable too!)
http://hsladybugpazzlestips.blogspot.com/2008/08/pumpkin-card-using-fabric.html
I use GOOD fabric, starch it twice, apply a good brand of iron-on-adhesive. It will sometimes not bond to the fabric so you have to check to make sure it stuck, usually on the edges is where it will lift off. Place the fabric with the adhesive up.
Have had success on these settings;
Lightweight fabric, pressure 15, speed 3 (good blade, dull ones will actually pull the fabric).
Sometimes you will have to cut twice, this works better than increasing the pressure. I also use the standard mat, a little bit of spray adhesive (on the edges, because it will be face down and you don't want to gunch up the fabric), smooth the fabric on the mat to make sure it is not loose. So far this has worked for me.
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