Model Forum / Radio Controlled / Land Models / October 2007

I am a newbie to r/c car but have purchased and built my first rc -
Hotshot 2.

It may be a daft thing to say but I am having real difficulty
understanding how decals should be cut and applied to the body.

The instructions says something lik 'cut round coloured line and
remove clear sheet'?  I have tried this but the blue backing comes off
rather than the clear sheet.

I have also heard that water should be used - is this correct?

Do I also have to cut round the decal leaving no clear sheet around
the decal?

Any advice/clearer instructions would be very grateful.