Hello!
I'm currently in the process of converting this pen plotter to a vinyl cutter. I use simply a blade holder you can get for cheap in eBay (mine was for around EUR 27).
The pen holder of this plotter is not very strong, so during plotting vinyl the blade holder will move around and the output is unusable. I removed the stock pen holder (just the small spring loaded thing) and replaced it with a small aluminum profile, shaped so that it holds perfect the blade holder. Many ppl just use elastic band or ty-rap.
You'll need some extra weight. On my 7570A i tested it with around 10gramms (balancing weight for alloy rims), enough to cut normal vinyl. You have to play around with the weight and media you want to cut.
All in all - it works. But i'm still not 100% happy with it. I have still a little problem with it, sharp edges will not be perfect, they're all the time a bit rounded. I set in my plotter software the tool offset, but it still not perfect. Maybe just 1-2/100th of a mm (a hair

), but if you know that there is an error, you'll notice the error.
Maybe someone else with a converted penplotter can say anything more about this and share his/her experience with us?