When I went to a 3 day Anita Goodesign/Brother event last year, we did cutwork on their big embroidery-only machines. But you have to remove the hoop and do the cutting by hand, then put the hoop back and stitch the next step. They have a lot of cutwork design collections as you can see on their website, I believe it's
www.anitagoodesignonline.com . I ended up with a combo sewing-embroidery machine tho (Brother Duetta 4500), which I love.