Here are some examples of carving tools.
For the primary cuts, and grinding.MK-100 Tile Saw
Dremel Moto Tool & Flex-Shaft Attachment

cheap burrs for first stage of carving, about $20 a set.
DIAMOND CARVING POINTS Sintered (Metal Bond)

fine carving sintered points for detail work, these points run between $35-$50 a peice.
http://www.ukam.com/Diamond%20Blades...el_09_11.0.jpg
DIAMOND PACIFIC NOVA MINIATURE CARVING POINTS FOR SANDING AND POLISHING. These have diamond embedded within a composite and are terrific for smoothing and polishing.
