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Just wondering here, does it do this with any picture or just one?
If it does it with every picture it may be an out of square problem, if it cuts fine then runs off it should be an electronic/software problem.
Can you post a picture of the bad cut?

If we could see the image that you used for I-Picture to create the gee code, that might help to explain the problem.

Remember jpg pictures have a white line around them that you cannot see unless you enlarge it way up but the machine can see it.

Jason A-Arm Plaque copy Reduced.bmp (90.41 KB)

Irestore, first is your image which if you open in your photo viewer and enlarge a bit you will see all the jagged edges on the letters, which is what the I-picture program sees as well. I believe that any images gets magnified at least 200% (or maybe more) by the program so anything that is not clean shows up in the work.

Second pic is colibri text with 10% blur applied, you will note that when magnified it has nice smooth edges ( this pic would carve recessed letters )

Third pic is same text, same blur applied but would carve raised letters

The best way to work signs or letters would be to use true type fonts.
True type fonts are vectors and as a vector the lines will hold as a selection, meaning you can pull a radial gradient inside those lines and get a picture just like those pictures that came with your machine
All of the teaching papers make it hard to understand when all thats needed is to select a vector line and pull a gradient inside it, thats it! thats all there is to making those pictures.

There are some good programs that can make a vector drawing from a picture and they are free like wintopo.exe


s146.photobucket.com/user/gregs_photo/profile/

Try paint.net they have a whole list of fonts that you can move to another program. Microsoft office has limited fonts. Gimp has a font extension package, but be carefull downloading it as some of the support sites want to add other files to your compputer.