Open the second file (you have to  set the screen of XCS to 26% to see al the Images to pratice the what is explain in the video.  Use the video to learn how to make the keychain. 

How to: 

1. Bring on the Image
2. Remove the background
3. Use the erase tool
4. Adjust the sharpness and grayscale
5. Make background of the clover transparant with the magicwand
6. Trace the image
7. Node editing
8. Make a outline
9. Make a Keychain hole
10. Cut and engrave the keychain

1. Bring on the image. Click on the image button on the left corner of the screen.  Search for the image, select it and click on open. Click on yes scale it to fit on canvas.
2. Click on the button,  edit image,  on the right side in design space. Choose the first button on the right screen, Magic wand. Slide the Fuzziness option to 100%
   Click on the white of the image to make it transparent. Then click on save.
3. Use the erase tool.
   Click on the image to edit it.
   Click on the button  "Edit Image". 
   Click on the second button on the right side of the screen, the erase tool. Slide the size of the eraser bigger.  Click on the items what you want to erase. Go around the image until everything you want to remove is gone.
4. Make the image in black and white, and also sharper. Click on the image to edit it. Click on the right side of the screen in design space. Click on adjustment.
   Slide the sharpness to 100 and grayscale to 130.
5. Use the magic wand to make some parts of the image transparant.
   Click on the button edit image,.  Click on the first button of the right side of the screen. The magic wand button. Click on parts of the image that you want to make transparent.
   Then click on save. 
6. Trace the image, with the standard settings.
   Select the image, then click on  the button "Trace image" on the right side of design space. We make no adjustments on the standard setting.  Then click save.  
7. Click on the left side of the screen , the purple button. to select the purple items. 
   This is wat we want to remove, so click on the delete button.
   Click on the image to select it. Slide the image to the right side of the screen.  This is the traced image. Click on the original image to move the original image out of the way . Select the traced image  . Then click on the  , engrave  button on the right side of the screen.
8.  Click on the traced image. Click node editing on the right side of the screen.  Make some adjustments of the image. We remove some nodes. Click on the node you want to remove, and push the delete button on you keyboard. And keep pushing the delete button until all the nodes which you want to remove.  When you are pleased with the results, then  click on, Done. 
9. Make an outline. Click on the image. On the right side of design space , click button  outline. 
   Make off set distance  5mm.  Inner outline for bitmap turn off.  Then select ok. 
10. Make a keychain hole. Click on the image.  Select the third icon on  the left side on the screen to select a circle. Hold the shift key and draw a circle.  Make the size a little smaller, to click on the right side of the screen to select the wide and make the hole 20mm. Drag the circle just a little bit over the outline. Select the circle and push the shift key, then select the outline. Then click on the right side the Combine, Unite button.
11.  Just to make sure we have no nodes in the way. Select the outline. Click on node editing. Select the nodes which not necessary, and push the delete button just amount times to delete the unwanted nodes. Then click on, Done
12. Click on the left side of the screen, the third button to make a circle. Make the circle  10 mm. Drag the circle in to the outline where we have made the other circle. Align with your arrow keys and eyeball it to the center. 
    Then select the outline  and hold the shift key to select the circle. Then push the fourth icon , on the combine menu. Subtract at overlap.
13.  For cutting the keychain, we using a PVC rigid foam. The settings are ment for this type of material. Use you own settings for the material you use.
    Select the black layer . Then click, Engrave,  on the right side of the screen. Click on the button  easy set panel. Set the power at 10% , Speed at 250, and the  lines at 100. Click the red layer. Click on cut, click on easy set panel, and set power on 30% and speed 30 and 1 pass. Then click on process in the upper right corner. Then click on start and push the button on the machine.