Raised Letter Help

[bpfohler]

I love the look of the gilded raised letter signs posted on the forum.
I've been playing with some samples but I seem to be having some problems.
I've been using roundover (or v-groove)bit to create a profile but when I run the cut-out it cuts off half the profile.
Am I missing something?

[bcammack]

Cutout tool path on inside of geometry instead outside?