are you looking to make the cut on the top of box???
how wide of a slot and will the cut have all straight lines or will they have shape or profile...
do have a table saw???

what is your experience level w/ a router...

 

let's assume you want to inlay the edge...

use a slot cutter to cut the groove...
depth of cut is controlled by the diameter of the bearing (there are a bazillion different diameters) and the width of the cut by the cutter...

note:
the more teeth the wing has the better the cut...
I'm partial to Freud...

Freud Slot Cutting Router Bit - justfreud.com
Freud Tools | 5 Piece Ball Bearing Set
CMT Rabbeting Bit Bearing Set - Mike's Tools

 

let's assume you want to inlay the the face...

assuming you have a table saw..
take a piece of scrap ans cut a rectangle out of the interior w/ your table saw by plunge cutting....
allow for your bushing size to get the net size of cut/inlay grove...
clamp this template to the lid and then route your grove...

if you do not want to plunge cut cut a rectangle piece sized to fit and double stick it to the lid...

note;
when you plunge cut w/ a TS make sure you use a hold down feather board so that the piece doesn't raise/lift up when you raise the blade into your material...
also oversize the the template so your router has an ample surface to ride on...
make sure you pattern is thick enough to accommodate the bushing...

.

 

StewMac has what you need, same as we use to cut the binding ledge for a guitar, about $95 (works great for me, btw) - Binding Router Bit Set

 

isn't that bit for rabbets and not veining as in for string inlays...

 

I like the collar, cutter and templet.
But that requires the utmost attention and control.
It can be mastered, however, with good cutters and an afternoon of waste.

An edge guide and straight cutter is also an option.
But equally difficult to control and stop on a dime.

Stick has an important point with slotters. Straight cutters are not the tools of choice for shallow slots down & cross grain, slotters are a lot better. But you still have a difficult control problem, no matter how you employ the cutter.

The least risky method with the most control transfers the skill and experience issues to one of templet and set up. 2 templets, one for the inside (for collars), a square or rectangle, and one for the outside (a window templet to trap the collar pathway), is nearly risk free.
But making, testing, and fixturing the templets will take some serious time. Nuthin's easy (done well), but you see it all the time.

 

just so we don't mix up apples and oranges...
here's some clarification... which are we addressing....

Banding, or edgebanding, is the name of both a process and an associated narrow strip of material used to create durable and aesthetically pleasing trim edges during finish carpentry....

.

an inlay is usually a filling consisting of a solid substance fitted to a cavity and cemented into place...


.

String Inlays are decorative materials set into the wooden surface of something...


.

is this what you have in mind...


.

some tools...
Veritas® String Inlay Tool System - Lee Valley Tools

 

I wonder exactly what you are trying to do. For example, how wide will this groove be? How deep. Is it on the perimeter of the flat top or around the edge on the side of the top? What router are you using? Will the groove be stopped or will it go completely across the top or side?

If I were cutting a small, shallow groove for a simple inlay, I would consider using a trim router and make a jig to guide the router with an end stop if I wanted it stopped. Clamp the jig to the top. If it were a stopped groove, I'd square it up with a perfectly sharpened chisel, then put in the inlay. I'd use a trim router to get better control and put less pressure against the edges of the jig.

Sounds like a handsome project. Don't make it overly complex. Looking forward to seeing the end result.

 

This is how I do it.

Layout banding location.
Offset straight edges by the offset of the bit to collar. (collar diameter - bit diameter /2)
Keep the collar against the straight edges all the way around.
Chisel the corners square with a sharp chisel.
Fit the banding and glue.

 

guys...
the OP wants to do the edge of the lid...
cut a dado and inlay a ready made ornate banding strip,,,

 

Then an edge guide would work if it is actually on the edge of the box and not offset to the inside from the edge like I showed.

A simple straight edge mounted to the router base with double stick tape is all that is needed.

 

On the edge is easy. Table router, slide the edge of the lid across the bit. Sneak up on the width. Featherboards to hold the piece steady.

 

go KISS/MISS and use the slot cutter...

 

Okay; what we have is two threads going on the same topic. Here's Tom's reply on the other thread...
Router Forums - View Single Post - small boxes with inlay and veneer
It's actually the top face that he's wanting to decorate.

 

thread cross over sure isn't easy...

to that I said...

Router Forums - View Single Post - choosing an edge guide to do inlaid banding

 

I want to route a groove into the face of box lid inset one inch from edge of lid forming a rectangle. Into this groove I will inlay a contrasting wood. This groove is a straight line 3/16 inch wide

My question is how to guide the router to cut this groove??? precision edge guide? CRB7?

I have limited experience w hand held router. I have used guide bushings and templates for doing an inlay. I have Dewalt 611

 

pattern DS taped to the lid...
no edge guide required...

 

What is DS?

 

DS = Double Stick as in double stick tape...
use sparingly...