The first stage, according to instructions, is to cut out the background panels and stitch them up with piping you create. I bought the damn piping, thankyouverymuch, and although I cut out the pieces, I didn't pull out the machine to stitch them together. That's not really needed until the top elements need to be fused down (or appliqued) onto it, and I wanted to get on to the cutting and assembling of the design. Here's what I started with:

And here is the first stage -- assembly of the dragonfly forms. I won't say much about cutting out all those itty bits of fabric, because I don't want to be all grumbly. The method was to lay the fusible web onto the pattern drawing and trace. (Ballpoint pen worked better than pencil, which was mostly invisible at the next step, and sharpie.) I then laid the fusible web onto the fabric and cut through both layers at once with my new rotary cutter.

Most of the body is one piece of dark blue, which I laid down and fused with the iron first. I then positioned the web bits for the other pieces and placed the fabric pieces on top, then I ironed. I tested for temperature with some scraps first and turned up the heat as a result. But the fusing was really really easy! It worked fabulously, much to my relief. I'd been worrying about messing up that part. I'll need to outline with a tight zigzag stitch or something, but only to complete the look. The pieces stick down very well indeed.
I also cut out the pieces for the lotus (from the white dupioni silk of the outer border) & lily pad at the bottom of the design, but I won't fuse them down until the woven background is assembled. I'm wondering a bit about fusing to that less even surface, but it worked so well, I'm less worried than I was.
Overall, I'm well satisfied at this point.
Next: Messy strips