I drill the weight port before I carve/sand the body to shape. It seems to help with tear out some. I found cedar to be a real pain with chipping/ tear outs when drilling ballast ports. You might try drilling the ballast port first then cutting out the body. As for the about of weight in those bait, by the size of the bodies I would guess 1/16oz would be about right. For lips take a look at some of the pre-made circuit board lips form (lureparts on-line) they have a nice round lip that would work well in that little bait. I would keep the lip angle between 25-30 degrees for that style of bait. This little bait is similar to yours but made from 1/2 thick balsa, I used 1/8oz ballast at the lowest point in the belly. Hope some of this will help.