Not quite the way in-the-hoop applique works. There has to be a stop for each step.
You have to do the cutting. Leave the fabric in the hoop and cut closely to the stitching. Then continue with the satin stitching.
When doing a new design - do a test sample before embroidering the garment.
Tutorial - http://www.windstarembroidery.com/embroidery-information.cfm?File=Applique