Here's an awesome video on it. Mike wilbanks is a VERY experienced breeder but for noobs like you and i cutting on day 43 like he does in the video probably is not the best idea. Generally people cut around day 52-56. His technique can still be applied though, i personally will just wait a little longer.
http://www.youtube.com/watch?v=NLHsQ...e_gdata_player
The Complete Ball Python by Kevin from NERD is the one i have and its awesome! http://www.amazon.com/gp/aw/d/9780971319
I also believe VPI has a similar "Ball python guide" out too thats supposed to be excellent. I dont own it but here it is:
http://www.vpi.com/store/products/py...ing_in_usa_can
EDIT: as for what to use to cut you can use razor blades, scalpels, tiny finger nail scissors, maybe even a really sharp pocket knife. Just gotta find what works best for you.