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This is how I setup the router to cut the fingerboard binding. The upright piece of wood is a 1/32" piece of basswood used for the binding. There is a mistake here, the rabbet was done after the radius was made!! Luckily it did not cause any error. Next time the binding should be made before the radius and I should use either plastic or another hard wood. Basswood has pronounsed age and it makes it quite difficult to cut a long thin piece out of it, the cutting tool tends to follow the age. I screwed up a couple of bindings ;-)

This is the jig after it is setup.

This is the resulting neck with binding rabbets.

This is the binding being cut from the piece of basswood. The sides are made straigth by putting the strip between two straight pieces of wood and sanding the sides of the strip until they are flat equal with the pieces of wood (kinda like a shooting board).