I'm not using the 3d to do the cutout, the parts were actually already cut out using a profile as you suggested, the first time I tried to run the 3d program the bit stopped short of the outer edge. I was using a .5inch ball nose and the bit stopped what appeared to be where the outside edge of the tool intersected with the outer boundary.
That was with using no vector boundary offset.
Then when I started to increase the offset nothing was changing.
The only way I could get the tool to come fully to the edge of the pattern was to have it come right out and over the edge.
I would really like to be able to have it machine right to the edge without going over and down, your right it makes a mess of a what is currently a really nice clean edge.