Class77,
I agree about slicing into the case and would be hesitant also. But it's good to know why it's not working and how it could be fixed per Tom's post.
What I'm wondering about in your case (so to speak), is why the round camera cutout is obscuring the camera lens. I also have a round cutout, and even though it's not centered, the lens does peep out to one side (probably because of the tight fit). Maybe it has to do with the model. I have the croc/cowhide magnetic closure, not cinema model.
I'll also be on the lookout for Piel Frama's iPad 3 models. A good place to also check is eBay, where sometimes you can get a deal on them. I still believe that for the money, this company makes the best quality and looking iPad cases.