From y'all, I learned that printing within the shaded area is discouraged because it can confuse the machine when it tries to scan for the registration marks. This may result in an inaccurate print-and-cut.
The area defined by the red outline is where the machine will cut. Anything that is positioned outside of that rectangle will not be cut out by the Silhouette cutter.
If you'd like to to see my Facebook post and the tips that were posted by my Facebook readers, please click HERE to read that thread.