Going to be a sweet inlay. Nice to see a fellow inlayer.
Yeah, abalone and Mother of Pearl are a pain to cut. They're beautiful materials but hard and brittle. You really need a fine jeweler's saw to cut them (like 50 tpi). Take your time and you'll be fine. Fo those who haven't played with shell, make sure you get them very close to the final surface when you inlay them. When you sand them flush you can get some unexpected layering. For those who are interested in getting into inlays I have a few blog entries on the subject (from 2008).

It takes time but is well worth the effort. For those who are curious, the 8x14 inlay on the "Nereida" took about 28 hours from start to finish. The one on the guitar was only 8 hours.

http://clearstreamwood.com/WordPress/projects/200709gmm_nereida/nereida-njord-the-inlays-part-i
http://clearstreamwood.com/WordPress/projects/200709gmm_nereida/nereida-njord-the-inlays-part-ii
http://clearstreamwood.com/WordPress/music/guitars/headstock-and-inlays

Have fun,
Dan