The size of the bit you choose has a lot to do with how "pointy" the corner areas if your route are going to be. A 1/2" diameter router bit will, naturally, leave a corner with a 1/4" radius... just something to keep in mind.
I'd take a lot of the "bulk" of any area you are going to be routing with something else, like a forstner bit in a hand drill (or better yet a drill press), as it saves the bit, it won't overheat as bad, and you won't risk breakage on smaller bits as much. Larger bits are good for removing bulk or flattening the bottom or a large area, smaller bits are better for delicate work, like in corners or tight curves.
Spiral bits come in a couple of flavors:
upwards cutting, which is better for dispersing the wood chips and keeping your route clear while working, but with some highly figured or more open grained woods, it can tear out the grain, or leave the top edge of your route "fuzzy" because the bit pulls the wood grain upwards as it cuts it.
downward cutting , which pushes the wood chips down into the area you are routing, which can contribute to bit overheating or binding, but will leave a much nicer top edge to your route, with less risk of tearout.
Most inlay work is done with spiral downcut bits, to my knowledge.
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