In my opinion, OP is doing exactly the right thing. Unless you are trying to reproduce specific materials such as cut stone, etc, I think it is a waste of effort trying to carve precise, seamless contours in pink foam. It is best used in 1/2" sheets to establish rough contours. Then, cover the whole thing with other materials as I described above. The N-gauge dioramas are beautiful, but I disagree that scale doesn't matter. N gauge requires careful sculpting of every detail. Pink foam is great for this. In O gauge, I find that you are better off building up the terrain details additively rather than subtractive carving in most cases. I do LOTS of carving of pink foam, but it is usually to simulate stone, brick or concrete, where the details are important.
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