Digital Scissors Help

Okay, I'm not using Elements, but Photoshop CS2.   Although I couldn't find help anywhere else, so hopefully some one here can help.

I am trying to use the "digital scissors" that are so wonderful on this site!  Although I'm not getting the desired results.  When I go to cut the area, I'm not getting an edged paper, I'm getting a very thin line the shape and size of the digital scissors.  Any one have any ideas?