Hey Mitch, thank you for the reply and nice comments.
Glenn, sounds crazy I know but after a few failed attempts with a utility knife I just had to see how the saw would work. I just basically laid the wrap down on the saw and held a piece of wood about 2" wide ( it was a rip of 3/8" plywood) and 20" long or so over the wrap to keep it from jumping up and down and fed the wrap and the wood at the same time , right hand pushing the wrap, left hand holding the wood. I kept the the wood piece about an inch away from the blade and about 3 inces from the end of the wrap so I could curl up the end of the wrap a bit to get a grip on it. I have a zero clearance insert in my saw, you will have to buy one or make one. You dont want any space or gap between the saw balde and the insert. I have a Forrest woodworker 2 blade in the saw and it was kind of built up with pitch from some syp that I had been ripping, but it cut the wrap real nice. I have a pretty nice saw that dont vibrate and the fence sits right down on the table, be careful that the wrap dont go under the fence. If it does then lay some thin cardboard on the table against the fence to lift up the wrap. The cardboard the comes in the center of a Bush light 30 pac works great, I have a bunch of those. lol!
Now, when you are ripping, stop when you have about 1/2" of wrap to go. crank the blade down and remove the wrap safely and finish the last 1/2" with a knife. If you dont do that the inlay piece that your making will want to curl up when its cut loose and possibly get caught in the blade. I thought about clamping a 1/4" rip of plywood to the fence about an 1/8 or so off the table to hold down the wrap but I wanted to see the wrap contact the fence. Here is a link to making a insert,
http://www.rockler.com/how-to/zero-clearance-table-saw-inserts
Hope that helps, if not give me a call or email.