I've usedInlace a lot and just turned some last night. It turns quite well with sharp tools but you can't force the cut at all, it will cause it's version of tearout which is kind of a chipping. Try it with light cuts and if you don't feel comfortable with that it shear scrapes really well. I find a steeper angle on my scraper works better. I've been sharpening them at 45 degrees instead of my old 75 or 80 but those did work also just not as cleanly.
I'm doing the clear Inlace right now and find that to make it clear I sand to 600 grit followed by 4/0 steel wool and use White automotive polishing compound followed by whatever finish I need.
For the stone effect Inlace I just sand to whatever my wood will be sanded and apply finish over that. If you get pin holes sand lightly to fill the hole and then put thin CA over it. For the Clear Inlace I just fill the pin hole with CA.
Inlace won't bond to some woods, Cocobolo comes to mind. Try a test if using an oily wood. If you can indercut the wood slightly but if it's not an oily wood it will bond pretty well on it's own.