Draw a detailed design of what the inlay will look like on a sheet of paper. Include precise measurements in the design; the inlay pieces need to fit together evenly.
Trace the perimeter of the inlay on the floor. Using the hammer and chisel, chip out the area where the inlay will be. Use the pry bar to pull away the pieces. Be careful to do this very neatly. Sand the new edges smooth.
Cut pieces of wood to the desired shapes and designs using the band saw. Perhaps you're making a compass rose in the middle of the kitchen, perhaps you're making small and simple decorations at the corners of the room. Be precise. The more neatly these pieces fit together, the less you'll have to work on them later.
Lay out the pieces in the designed pattern. Fit them together snugly. The chisel and sandpaper can be used for fine work on the pieces to ensure that they fit evenly. Consider using slivers of wood or re-cutting pieces in the event that there are gaps.
One by one, glue the pieces to the subfloor using the flooring adhesive. Start on one side and work your way left to right. Apply glue to the bottom and sides of an inlay piece and press it both down and toward the existing floor. Use the pry bar to press the pieces together, creating a flush surface. Repeat this pattern with all the pieces, keeping the seams tight.
Give the adhesive time to dry.
Seal the inlay with the same sealant used on the rest of the floor. This will ensure an even luster across the entire floor.