There is a demo part I made with cut3d. This is made from ipe with a
lot of bit overlap for a smooth finish. It still needs some sanding
but not a huge amount. It took about 1 hour to make it I used a ¼"
endmill to remove the bulk and then the final cuts were done with a
1/8 ball nose endmill. Its 10" long I think.
The inlay is done with 60 degree v cutting bit. A fellow came up with
this method as it is easier to do small pieces and you can get sharp
corners. I think I did not champ it tight enough and had a gap the
others I did were worse. It's that or the pieces moved while cutting.
When doing the inlay you're taking over a third of an inch off with a
vee bit. The wood needs to be held really tight.

http://www.knight-toolworks.com/cnc/inlay1.jpg
http://www.knight-toolworks.com/cnc/inlay2.jpg
http://www.knight-toolworks.com/cnc/...%20(Small).JPG
http://www.knight-toolworks.com/cnc/...%20(Small).JPG
http://www.knight-toolworks.com/cnc/...%20(Small).JPG