Goal: Trace a bitmap, then make the resulting vector objects non-overlapping like a jigsaw puzzle.

The most simple example I can think of is like a Venn Diagram. Say you create two intersecting circles, with the second on top of the first. Now from the first circle, I'd like to cut out the portion that was overlapped by the second, kind of creating a crescent moon shape so that neither of the two circles are overlapping, but they still appear as if they are.

Thanks for your help.

When you do the trace, uncheck the box that says "stack scans".

Oh thank you, that works great. Just what I was looking for.