Neil,
The diamond I use is a 1/8" diameter rod with a diamond in the end that has been sharpened to a point 90 degrees and 120 are the usual angles. It's spring loaded into a holder and you zero it onto the top of the work and I usually use 2mm as depth of cut.
It obviously doesn't cut 2mm deep but that depth puts the pressure on via the spring load.
Bit of experimentation is needed as regards materials depth of cut and spring pressure.
Doesn't't take a lot to pull it in X and Y but Z needs a bit of force to overcome spring pressure.
I currently use an old Roland PNC2200 engraver which is a gutless wonder and moves the carriage via fine bowden cable and capstans so I wouldn't worry too much about X & Y movements.
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