I believe that this technique was shared at a Stampin' Up! Regional Event in Hamilton Ontario earlier this year.
You can use the Round Tab Punch to create a 1 7/8" hole in a 3x3 piece of cardstock and here is how you do it:
Cut a piece of cardstock to a 3x3 square. Slide it all the way into the Round Tab Punch, center it and punch it out.
Rotate the cardstock a 1/4 turn and slide it back into the punch all the way, lining it up to create a circle and punch. Here are pictures of the cardstock in the punch and a shot of the pencil lines I made to show you what you will be punching out.
Here is a shot of the punched out pieces and the circle they left behind.
Here is a card I created using this technique. Have fun!!!!