Ok, We've gone and changed the settings... found the blade setup guide from another post.
Now the blade is barely visible. Just cuts through the vinyl not the backing and pressure is up to 130.
But it still seems to start in a bad spot, where the blade has to turn and cuts into the letter rather than into the scrap... Sign blazer appears to know what the scrap is (red vs. blue lines in the cutting map), but doesnt seem to take that into account.
Is it a limit of the sign blazer software?