[neonlady]

I have been working on a file in AI CS2, and have created letters in yellow (for help in expalaination), then copied pasted in back where I outlined them and changed the color to blue. As a set, the image views as a yellow word with a blue outline.
Here's the rub: when cutting, bothe letters cut the same size, so I've lost the "outline effect"

All is sent to "signcut", so create outlines is activated.
When viewing in Signcut, the letters appear very close in size, but are definitely therw as two separate colors, as can be seen by viewing the selected colors only box.

Any help would be greatly appreciated.

[Kidder Design]

Your problem is that the software does not see the outline.

What you need to do is adjust the letters how you want them, then go to >Object>Expand.

As a good practice, learn to work in fill only!!!!

Once expanded, select your text and go to >Object>Path>Offset Path

You will have to play with the setting to learn what size you want, but that will give you the correct outline to your letters, shape, etc.

~Kevin