upload design into XCS

add an outline to the image , make sure the outline is thick around the image

add 2 circles , make sure you hold shift when making them so they are round.  make one big and one small that fits inside each other 

unite the bigger circle to the image outline, do this by holding shift on the large circle and the outline then going to the top and hitting unite 

these are the settings i have used 

mark where you want and process the work

clean up using a damp rag  and you are done