Im a newby to most of this, That said.  I create a vector text file, The kids name or something. I import it into Mach 3 fine and it will cut it. Now the question. How do I tell the software to cut out the entire letter and not just the outline?  Did I explaine that right?  The vector only cuts the lines on say a bold letter F but I have wood between the lines that I want removed. Is there in something in Mach or do I need to do it in the software that I create the DXF in?

Thanks in advance.

What your doing now is engraving, or using an outline, or contour toolpath. What your wanting to do (if I understand correctly) is called pocketing. I am unaware of any method for doing this without the use of a cam software. Your next question will be "where do I get this cam software?" There may be some free software that somebody can hopefully point you in the right direction to. Vectric software is highly respected, not free, but very cheap (compared to others). It would also take you well beyond pocketing, as your abilities grow. http://www.vectric.com/
Be forewarned that battles have been won and lost, and many lives paid in the argument and pursuit of the "best" cam software. I would rank it right up there with religion and politics. 
Best of luck!

There is a section on doing text in relief in the LazyCam manual...Tutorial #4. Like Sam replied, it's a function of creating a pocket.
One important point on doing it is to have a cutter of the correct size so the program can machine the inside and outside profiles of the letter. That's were letters created in CAD can save you from having problems.

RICH

I will look into that. For now I have a work around. In my design software I can create inline paths in the letters(just like an outline just inside the letters) For the small letters I'm making its working.  Thanks