I have to cut the lip slots after the baits are cut. I use ,as someone on here mentioned, a primitive wooden jig to cut my lip slots. I had stainless ones milled but I chose to use the wooden ones I make because I can adjust them and they are much faster to use. It's much harder with a round bait but afer you cut several you get the hang of it. Every step I do has evolved greatly and is still evolving. I learned along time ago I never stop learning and by all means I am no where close to knowing everything. As for the second question the machine uses a circular saw blade to cut the baits. I'm a carpenter but I have no clue when it comes to machines. Most of the other working parts in the machine are foreign to me.