It's a stupid question but was just curious if I can use the Xyron personal cutting system with fondant or edible sheets, has any tried it?

I have not, but I have used the Fiskars punches.(new ones) http://www.fiskarscrafts.com/tools/s_border-punches.aspx
I'm still playing with the fondant consistancy and you have to let it air dry a little so it does not stick to the punch. Maybe someone else can help. Good luck.