I use a rotary blade on a dremel tool to cut with, and glue-ons are a piece of cake-I like to use a hot glue gun for this, and I try and warm the end of the shaft up with my hands before glueing---and be sure to clean out the ferrule with alcohol before glueing.
Wood arrows penetrate just fine---infact you can get some REALLY heavy wood shafts that will hit like a hammer. As for removing fletching, I just use a utilty knife and some fine steel wool. Usually comes off pretty easy, and if you end up dinking up the finish just do another light coat before refletching.
Good luck! Woodies are fun.