Yes. This is by design. The inner/outer rings on the design screen are part of the design process only. They are there to show you what will appear on the actual CD label section when it is peeled away from the sheet. The design screen will hide any items that go outside those borders. This is done to allow you to focus on what will be on the actual CD label when peeled away.

When you go to the Print Preview, it is going to show everything that was inside or outside those ring borders. It is not going to show just the CD label portion of the sheet. Anything that extends beyond the square portion of the design screen will be cut off in the Print Preview.