You will have to make a cut out pattern of your design first. Then fasten the pattern to your wood, then using a guide bushing type of bit, this allows you to route out the wood to matching your pattern. Keeping in mind that as you move the router following the outline of the pattern that that bit has a certain diameter. If you pattern is smaller that that bit. Then when your reach this point, you are going to have a bigger pattern. Then by adding a sleeve to the base of your Router, fastening down your pattern and following that same pattern into your inlay material the thickness of this selves wall will allow for your inlay to snap in. There is a school of tried and true method of tilting the base of the router in order to allow a slanted back side to the inlay, to be able to snap in better. Also with a 220 or higher grade sandpaper CARE FULL LIGHT sand the edges with one continuous stroke around, to allow the inlay into a stubborn fit. A very critical step is to buy a centering bit for your router, to center the router's bits Collette to the center of the base. As you can picture, that that bit will travel around on the inside of that sleeve with very , very little margin from the spinning bit to the inside of the walls of that sleeve. This is also where a set bits deppth onto a plunge type router realy shines. Rockler Woodworking supply shows you a great picture of these bits and the inlay sleeve set up as a package.
Oh as an addentium, There is on the market a sign lettering set-up by the name of, Mastercraft. These people have designed a very unusual design in their base,. That has the ability to fasten this base to multi routers bases. They have also designed into this base several router base bushings that snap in. One of which is a inlay set-up, and also a centering bit setup with detailed instructions. The down side to the above set-up is you will ahve to purchace longer shank bits, this allows for the thickness of their design base.
Last edited by john880; 08-23-2012 at 11:17 PM.