[Mr.Chips]

Im cutting some raised text and used a 1/16" bit to clean up close to the letter and a 1/8" bit to clean a little more and finally a 1/2" bit to clean up the big areas. The problem is there is still a space between the 1/8" bit and the 1/16" bits that didnt get cleaned up.
whats the trick to clean that area up, see photo below.

[Tom-AMS]

Assuming the tool path geometry is the "edge" of the letters, it looks like your 1/16 diameter tool is using cutter compensation, and is cutting OK.
The 1/8 dia tool may be using the same tool path geometry and cutter comp; however when the tool path geometry has "U" or "V" / tight corners too narrow for the tool, some (most?)
CAM software will "smooth" / skip past these "pinch" points - thus leaving behind small uncut wedges. Try running two or three passes with the 1/16 endmill, with a 25% to 30% step over to nibble away these areas.
Can you back plot the tool path to see what's happening? can you post a screenshot of the back plot tool path for each endmill?

[routalot]

It is a bit more work and doesn't solve all of the problems but you can clean those areas by introducing a new layer and creating shapes on the new layer that surround the surplus material and then use a pocket routine to remove the excess material.you could use the existing vectors,copied across and then offset by a tiny bit less than the tool radius and then trim away the elements that aren't relevant to the stock removal.