Hi Nikki,
Thanks for the inquiry. A cut-line requires precision, and tracing the original image is not going to give you good results. Duplicating the original works much better. The fastest way to duplicate an object is to select it and press the plus sign on the numeric key pad. A duplicate of the object is created right on top of the original. Since this duplicate is intended to be a cut line, then right click on a red swatch in the color pallet to change the outline to red, then left click on the no-fill swatch (swatch containing a diagonal line), so that the interior of that outline is empty. If your keyboard doesn't include the numeric keypad, then select the shape and press Control-D after changing the Duplicate Offset to 0" (see tools menu) for both horizontal and vertical directions. This also copies the original, placing it directly on top.
You may need to create a second layer to contain the outline to avoid confusion during printing and cutting.
Sometimes the copied shape is complex and made up of several lines or outlines. Do whatever is necessary to break the design apart, then delete everything but the outermost outline. In later versions of Corel, there is also another simple way of creating cut lines. Select object(s), then in the Shaping docker, choose the Boundaries option and click Apply. This will create an outermost outline even around several objects and place it directly on top of the original artwork.
Also, take into consideration that the cut-line is precisely where the shape will be cut. If you want any margin to appear around the image, or if the original outline was represented with a heavy stroke, you will need to expand the outline as much as is necessary, by using the Contour tool.
Remember, a vector path with an applied stroke normally travels through the middle of that stroke thickness. If you want to preserve that thickness, then the path will need to be expanded to match the outer edges of the stroke.
I hope this will help you achieve better control when creating cut-lines. Thanks.