I'm not sure about the Stampin' Up punch sets, but I have a lot of experience with the Martha Stewart brand. (Since E.K. Success makes the SU versions, I think they work the same way.) When you are cutting your paper, it is essential that you cut it to the exact measurements. It can't be off by even the tiniest bit. When you are punching your edge, be sure that you are holding your paper in place, and not just resting it against the edge of the punch. I find that placing the punch on my table or desk works better than holding it in my hand. I have better control over where the paper goes.
I hope this has helped, because I know how frustrating it can be when the punches don't line up properly. Good luck, and practice, practice, practice with scraps.
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