Craft Edge

If you just let the dots hang over, and you are using the outlines, it will cut the outline too. Make your circles over the text, then select all of the dots, Control K (Path/Combine). Select the dots and the original letters, Path/Difference. Difference and Exclusion will only work with Exactly two paths, that is why you need to combine the dots. If you are going to make the outlines, I would do that, convert everything to Path, then make the dots. HTH

Thanks so much Heather! I did get it to work and used heat transfer vinyl to make a shirt for my daughter from it. I'll post the file later in case anyone else's kids have Eagles as their mascot. Came out really cute and I learned something new about what I can do with Inkscape!

Here's my finished product. I forgot to change the settings on the cutter so it cut through the transfer paper in some areas which made some icky areas in the outlining. Next time I'll make the polka dots a little bigger and not smoosh the letters quite so much. I put it on a hoodie using Spectra Cut II and she wore it today! My friend has a heat press so we pressed it at her house.

I just found this polka dot font tonight.

http://www.fontspace.com/katz-fontz/kg-abcs

That's a GREAT one. Alpha and some wonderful images as well.

TFS, I really love it!