I have tried both Jessica Sprague Rounded corners and KPDecorative Scissors that has a rounded corner in it.
When I target the bottom layer, it just cuts out that shape with in the color that is on top in the paint bucket.
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 Momma to 3 wild boys!
In the backpack: Canon 50D, Canon 50mm 1.8, Tamron 28-75 2.8, Canon 70-200 1.4
In the den: PSE 5.0 and ACDSee (but it's been in the box for a year now, guess I should get it out) 
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