HOW TO CUT AND ATTACH PHOTO ETCHED PARTS:

I use a pair of Xuron photo etch cutters. They are designed for photo etch and once you learn to use them, can do a super job of cutting right along the edge.

 
You can also use some small, but sharp scissors, such as you find in a pharmacy or a place that sells make-up and other beauty products. These will eventually wear out after several years, but get the best you can afford.
 
Another option is to use a new hobby knife blade and cut on a hard surface, such as a rather thick piece of glass (thick, because you will be putting some pressure on it). For the very small bits, it is a good idea to either hold them when using scissors or cover them with a finger if using a knife. I have also found that putting the fret on the sticky side of a piece of masking tape helps keep the bits from flying off into the air, but nothing is foolproof.

Once the part is cut, you can carefully sand off any little nubs that may be left from where it was attached to the fret. I use a sanding stick for this and sand along the edge rather than across it. This helps prevent any creasing of the part.

 
You can use many cements to stick the bits. For those that are not going to be weight bearing, I use clear paint. Acrylic or enamel, it makes no difference. Simply brush the clear paint down and put the photo etched part into it. When it dries, it is held on fairly well. You can also use white glue or Future.
 
If they are going to be weight bearing you'll need something like super glue or epoxy. Make a super glue applicator with a small wooden dowel and a sewing needle. Cut the eyelet as high as you can (beware as the piece you cut will go flying off). This 'U' shaped end will hold a drop of super glue. The needle then gets shoved into the wooden dowel for a handle. There are ones ready made out of aluminum, but the home made one works just as well. When the eyelet gets clogged, simply hold it over a flame and burn off the glue.