Chuck, I would say that you would basically cut the perimeter of the inlay perpendicular to the face, if the fit is perfect. Perhaps a tiny bit of draft angle would be advantageous, so that as you press the inlay into the pocket, it fits easily until it is most all the way down, then it gets really snug as the topmost edge scrapes the pocket as you push it home.
You would need to experiment to see how much the inlay grows when wrapped. Chances are, the top 2/3's of it stretches slightly, and the bottom 1/3 compresses slightly. This is what sheet metal workers have to deal with all the time when forming bends.
First you get good, then you get fast. Then grouchiness sets in.
(Note: The opinions expressed in this post are my own and are not necessarily those of CNCzone and its management)