How do you use cut and cut down those little branches that are shaped like a y?
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First go to the SS Anne ship in Vermillion City after seeing Bill at the cape. Then find the captain on the ship and talk to him. He'll give you HM01 Cut and then you teach it to a compatible pokemon (bulbasaur/charmander/charmeleon/ivysaur/venusaur/charizard,bee-drill,) and press A. Then you will cut the tree.
I can tell you that if you go to Pokemon on your menu and choose the Pokemon with Cut, a little drop-down menu will present the word "Cut", where pressing A on "Cut" will cut down the grass or tree in front of you.
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