FS157~CASing Barbara #2 by darleenstamps - Cards and Paper Crafts at Splitcoaststampers - this is the card the OP was referring to.
Gina's technique would certainly work.
What I do is trace around the outer edge of the die on the back of my matting layer and hand cut it.
But did you see that Spellbinders have just brought out some nesting dies for Labels 1 that are smaller than the original set, so that they will mat with narrow borders. Maybe they'll go that way with more of the labels!
If you don't mind using a few gems at strategic points, I have seen some stampers take the same size die, and cut it into half or quarters - then you can place it behind the image layer. Obviously there are little gaps where you've expanded the cut layer, hence the need for gems or something to cover it up. I'll see if I can find an example...
Help with Spellbinders
