Yep. I am a believer in string through body bridges. I've got this Ibanez I bought for 100 bucks. It's one of the Luthite erodyne (sp?) models and I was thinking of drilling it out and running the strings through the back of it (the bridge that came with it is already set up for this). I've heard the "m+m" analogy and have also heard the material referred to as "clay-like." I just want to know if this is even possible, as I know I can sell the thing as is for a lot more than I got it.
A search for a Luthite MSDS on google did not come up with anything useful. So I would say to take the same precautions when working Luthite that you might take with MDF.