I have a commercially built Diamond tool and have found the clamping adequate I do not use it for deep rough cutting.
For roughing I like to use a negative rake (Carbide) tool bit in a holder.
For finishing to accurate size I prefer HSS tool very slightly rounded as mentioned previously. Finishing to size (to a tenth or two) with carbide is problematic, fine if you hit it in one but carbide due to the rounded edge, on most but not all tips does not like to cut a tenth or two, you get a less than nice finish. You have to cut deeper planning by dead reckoning to finish to size.
Sharp HSS I find is more forgiving, it is happy to peel of a tenth.
Hint use a dial indicator to indicate size, pressed against the cross slide to lead you in to exact size over the last few thou, miking the part after each cut. you may need to make up a jig to fit the dial indicator or use a magnetic base as I do. Unless you are lucky enough to have a digital readout fitted. The cross feed feed screw is out of its depth under .0005. it does not have the repeatability of a .0001" dial indicator.
Cheers
John