When pressing Cut in Design Studio those having problems are getting a message box prompting them to insert the Pagoda cart - even though it is already in the machine or jukebox.
If you're having trouble cutting with your Pagoda cartridge contact Provocraft as it may be defective.
UPDATE - 12 June 2010
PC have released a new Font Pack today which finally fixes this problem. They have added "Pagoda Passion" to the Font Pack. Download it from here: http://www.cricut.com/CDS/Update.aspx
This update also contains 23 of the 24 new Cricut Lite carts.
