Brian Gray
 Posts: 339
Joined: 2004-01-21
Location: Sandusky, OH
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Well, is this inlay, or marquetry?
If you are inlaying into solid wood, then I would probably use a router with a collet set made for inlaying. You create a circle in MDF, acrylic, whatever to make a template. Then you use one collet to cut the recess, and then another collet to cut the inlay piece. Very easy...perfect match.
If this is marquetry, then go with your punch idea. Just make sure that the punch is very very sharp. The cleaner the cut, the better.
I can't answer your mother of pearl question, except to say that you might want to check guitar-making suppliers.
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