Cut layer registering as engrave?

[cynd11]

I’m pretty sure we helped you with this same logo once before, so you might also check some of the tips we gave you at the time. Here’s the thread if you’ve forgotten:

Cutting out logo

I have a customer that wants me to take his logo and cut it out with a few pixel lip. Can someone tell me how to do that in Illustrator/Photoshop? This is what I’ve done so far, but GF only sees it at a bitmap and won’t cut.!!