To inlay a stone, trace the stone shape where you want to set it. Cut away the outline with the small saw bur. Remove the interior area with the ball bur. If needed, fill the area with wood putty and press the stone in to fill gaps and seat the stone evenly. Above, you can also see where I have carved and lowered the lightning bolt shaped area. I used the drum sander to help smooth and remove the center area after the edges were cut with the inverted cone shaped bur. I have also started cutting and lowering some "sand ripples".