Craft Edge

Wondering how to do this one. I have a picture of a balloon, I traced it and now have an empty balloon. What I would like to do is cut the outline of the balloon, but keep the middle solid. Also I'd like to insert some text in the middle that would be cut out. If I insert the text as is right now, it would cut out the outline of the balloon and then the text separate. Attached is the empty balloon. Hope I did not confuse anyone...

Is this what you want to do?

Finally, an easy one!
When you trace it traces the inside and outside of the line. If you want a solid shape, click on the image, select path>Break Apart and then click on just the inner line and delete it.

Exactly what I needed to do. So, based on what firstcut said, break apart, then you have your solid balloon. For the text then, after I drop it in insode, I selected all and clicked Object to path. That gave me the outline of the words (outline display mode). That should give me what I need to cut?

That sound right although I often just add my text right in SCAL.