+1 on what Chris has said. Pink eye is a wonderful work of nature but without good woodworking skills will only be a problem and a tragedy to the wood and your hard earned dollars. If you decide to move forward with it, then take it very slow and practice on at least something like ebony(still expensive but not so much), Boisd'arc (spelling, very hard, cheap wood) Practice , practice , practice.
Good luck,
MK
The main reason I wanted to use pink ivory is because I am making an SG with a very light pink body and a pearloid pickguard, and I was going to repeat the pink and pearl finish on the fretboard. After hearing your advice, and after thinking about it, I agree to hold off on it. I think along with your reasons that it is such a beautiful wood, it belongs with a naturally finished body, where the whole thing can be naturally beautiful. I saw a bass once that some guy did using pink ivory. I'll post it here: http://www.alembic.com/info/FC_duo.html
Anyways, can either of you (or anyone else), think of a wood I could use that would go well with the pink and pearl body? I'm going to paint the neck white, and probably use MoP Les Paul Deluxe inlays, but I could always change it. Anthing that would look good with that?
As someothers have stated my next choice would be tulipwood as well.
MK