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http://www.megauk.com/carbide_drill_bits.php
You can get cheaper on eBay from China; my experience is that those ones don't stay sharp as long, but if you're doing it by hand you'll likely break the bits long before they go blunt, especially the smaller sizes.
There are purpose-made 1/8th bits for inlay work but they're brutally expensive. Specific cutting geometries for the different shells and semi-precious stones and so on. Stewmac have some sensibly priced ones for doing the wood cutting.
I'll get some from Mega and try them out, @Sporky. Thanks for the lead - not come across Mega before
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Since you're looking at stuff that involves using the side of the cutter, look at are the routers near the bottom (the chip breaker ones should work better on shell). The others are drill bits and only cut downwards. (I don't know where the reground thing comes in - that only seems to apply to some of the drill bits.)
What sort of shape are you thinking of making? Wouldn't a jewellers saw work? If you're going to use a Dremel type tool, you might want to think about dust extraction - not sure I'd want to be breathing in finely powered shell, which is why my micro spindle moulder thingy has extraction on it...
http://www.thefretboard.co.uk/discussion/67065/rotary-tool-home-brew-add-ons
Nomad
Nobody loves me but my mother... and she could be jivin' too...
The reground drills are still useful for "spotting" corners - I mentioned those because while they're no use in CNC (the length isn't predictable) they're still fine for Dremel use, and less expensive. But yes, only applies to the drills - I should perhaps have said reground-drills and router bits.