I grind cork and rubber with a Dremel on my lathe. I use the hand extension and made a simple clamp to hold it .I use the sanding drums, 120 grit or 80 grit for a fine finish, and the 40 or 60 grit for the roughing. I use a vacuum cleaner hose very close to the set up , mainly to suck away any rubber off the sanding drum, to reduce it from being blocked. This turned out to be quite important and keeps it all cool as well. The fine grades, need to be very sharp, and for my set up, they do not take a lot of volume of material . The course grade will take away a very large volume of material. I did make some 38mm drums that screwed onto the handpiece, and used the pre adhesive commercial sanding belt material. It worked very well. I quickly learnt why they have a spliced joint arrangement. Contact adhesive worked very well for using carborundum wet/dry paper. The carborundum paper in eiether the sanding drums, or on my 38mm drums, worked the best of the various paper types available. For smaller holes in urathane, I use the cheap open structure mounted points. The white ones were best, but the pink ones also worked quite well, Use the coursest grit available. The course desic diamond wheels also work, but will block or clog quite easily. Using just some water with a small amount of dish wash water to break down it's water tension worked quite well. Small holes being around 3mm to 12mm ID.
Hope this helps some people out..
Neil