I thought I'd send an update. Here's what we can do: we can convert PNG files to SVG files which then makes them cuttable on die cutting machines like the Cricut. I don't know about other machines, but for SVG files to cut on your cricut you have to have a software called Sure Cuts a Lot (SCAL) or Make the Cut. I have Sure Cuts a Lot (SCAL) so I don't know much about Make the Cut (There was a lawsuit against Make the Cut by Provo Craft the maker of the Cricut so it no longer works with Cricut, but does work with other cutting machines). What I have NOT been able to do is print out my PNG image and then convert to SVG and cut out that printed image. It is doable with one exception - because of the discrepancy between printing you image, placing it on your cricut mat to cut and the SCAL software - it doesn't cut out the image precisely. It's "off" so to speak, so essentially looks like a bad cutting job. If anyone knows of a way to correct this, I'd love to know. I believe that's is why Provo Craft came out with the Cricut Imagine (it prints and then cuts w/out removing it from the machine - but SCAL -to my knowledge-does not work with this machine)
The workaround for this is to print out your digital papers, apply to your cricut mat, THEN cut our your converted image through SCAL with your Cricut. Julie and I are working on some tutorials for anyone who may be interested in this. We'll probably have 2; one for older files that you may already have showing you how to convert to SVG (it's not that hard, just a few simple steps with a free program called Inkscape), and 2 (Julie, correct me if I'm wrong) she is working on including SVG files in her newer releases!
Hope that helps anyone who is interested!