I inlayed the extra veneer I plan to glue on my headstock. I have problems seeing the line when I use a pencil to draw around the inlay. Not enough contrast between a lead line and the dark rosewood I guess. So I decided to try masking tape over the veneer so the pencil line would show better. This was great......till I started routing. The tape rolls up around the blade and the sticky side collects the loose dust from the cutter. After a little cutting it's difficult to see the line on the other side of the web your cutting out. After the first pass I had to pull all the tape away and retrace around the inlay. Worked out ok, but not great. I won't use the tape method again but paper might work ok, not sure. Most of my error comes from not being able to keep the inlay perfectly still while I trace around it.
Any problem with just using CA to glue the inlay to the EIR veneer. There are a couple of places where I left a little gap. Should I sand some rosewood into these gaps then hit with thin CA or should I just fill the gap with medium CA? I was thinking of glueing the inlay to the veneer before glueing the veneer to the headstock......sound reasonable? The depth of the inlay is approximately the same as the depth of the veneer so in a few place the routed channel goes all the way through the veneer. I'm afraid if I glue the veneer to the headstock first, some of the glue may squeeze through these opening and then I couldn't get the inlay all the way down.
Here are a few pics including one with a shot of the die grinder I bought from John Hall to cut the recess for the inlay (works great). I used the "bob up and down like a sewing machine" method to cut around the outline of the letters and that seems to work well.
Tape in place and lines drawn to positon the inlay:

After the first pass. Note that I have other veneer sheets surrounding the one I'm working on (same thickness) to keep the die grinder base level.

And here is the finished product (inlay not yet glued in veneer). Not sure how well you can see the inlay.......ok but definietely not perfect. You can also see the die grinder I bought from John.
