I would definitely take the paper off - I have used water soluable papers in the past - for a dresden plate paper-pieced wall hanging/table topper. I left the paper in when it was quilted. The longarmer didn't have any issues with it, but it did take several washings for it to come out - I was mortified the first time I pulled it out of the washer - I put it right back in and washed it several times on the gentle cycle until it was all gone.