Cut width - in this case, he is machining a trough or valley into the aluminum the full width of the cutter. Instead of cutting a step or a shoulder on the edge of the part, he is using the cutter almost like a saw to cut the material in two - plowing right down the middle, so to speak.
The difference between milling and routing is terminology. You are removing material if you are routing or if you are milling but milling usually means higher removal rates at slower speeds with more rigidity and accuracy of cut. Routing usually means higher spindle speeds, faster cutting, but less material removed with each pass and the machine is typically not as heavy-duty. Routers are light-duty compared to milling machines.
Scott
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