love this! binding over the frets looks so much better. I know it makes refretting difficult, but it's the traditional way for the classic, high-end Gibson-style guitars I love. binding MUST cover the frets. otherwise it looks cheap.
I use a 1/4" flush trim bit. I fasten the fretboard to a block of wood that has a 5° bevel cut. The only thing that needs to be done is some filing at each fret end. I've tried a 1/8" flush trim bit with a guide bushing (not to be confused with bearing), but it left a tad bit too much rash on the fretboard, even when taped.
uh, uh, uh, uh, uh, uh, uh, ..... my God, man, plan your statements and train your brain to form smooth complete sentences. Good tip though with the taped bit. I've left you a +.
Your method of gluing the binding fails - temp and humidity changes of the fret-board woods can literally break the bond - Use Weld-On acrylic cement #16. Thank me later :)
Don't take it personally, but this is a very dumb way of fretting a guitar, done by the morons from Gibson (and other companies) long time ago, it doesn't make sense in any way, less fret surface and a place for the string to get stuck!