Boyd, I use a belt sander flipped upside down and clamped in my vice to help shape lures. I bought my sander at a flea market by my house. In my experience, Flea markets and garage sales are a good place to find cheap tools.
If the foam you have doesn't work to protect you lures from you vice jaws, try a computer mouse pad. It will protect the wood from the metal jaws and the no slip rubber backing will keep the lure from shifting.