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I have never really had good luck with the iron on veneer. I use very thin paper-backed veneer with contact cement. I typically reveneer an entire panel, or if it will be noticeable, redo a facing panel as well, so they will properly match. This of course involved stripping the entire cabinet. Maybe it's overkill, but by the time you are into that level of woodworking and preparation, you just may as well take it all the way.
Banderson-to trim veneer, I pretty much use whatever is sharp. I keep an Exacto knife and a variety of other razor blade tools, as well as a double edged razor blade like you find in the old safety razors-they are deadly sharp, and perfect for those tight corners. I also sand down the edges when I am done trimming. There are tools on the market that are also made for just such jobs as well, although they are really only good for straight edges.
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