When I copy and paste an image into inkscape for use on a plotter the lettering is not the same, this is what I am doing
1. load image into inkscape
2. object to path
3. trace bit map
4. separate the images and delete the bottom image
5. object to path
6. save image as eps
7. load saved image into signcut pro for cutting
not sure whats going on but the image loaded into signcut is not exactly the same, and is a bit distorted, any help or advice on this is greatly appreciated.

Object to Path will do nothing with a bitmap image, you can skip step 2.
Also, it won't do anything if the object is already a path, you can also skip step 5.

Can you show us examples that demonstrate the kind of distortion you get?

sorry I don't know how to upload an image in inkscape

Search the web for image hosting, make a pick, register, upload and use the link to share the image with us.

Other than that, could you add a line or two about why do you need Inkscape in the whole endeavour?

Or you could attach to your next message. Using the full editor (Post Reply button, not Quick Reply), look below the Preview and Submit buttons, and click on the "Attachements" tab. Then click Add Files button.

Please upload the SVG file, which is saved before you delete the imported raster image. (That way, we can see the original.) Not everyone will be able to see the image in the EPS file (I"m not even sure if this forum will accect an EPS). So instead, please upload a screenshot of the unacceptable result, along with the SVG. You can upload both at the same time.

My best guess is that the problem is with auto tracing. Trace Bitmap cannot precisely reproduce any raster image. (No trace engine can.) It will always be a good approximation.

If all you're doing is tracing some text, you'd probably be better off using Inkscape's Text tool, and type the text yourself. After it's typed, and while it's selected, click Path menu > Union. That will change it to the kind of path that your cutter can use. Then Save As EPS, and send to the cutter.