Yea, I use cork all the time. The only challenging thing is keeping it from tearing out as you sand it. The best tool for shaping it is the spindle sander with pretty fine grit sandpaper. The more course the tool, the greater the possibility it'll catch and tear out cork. Never sand into a glue joint (where the material after the joint is higher than the joint) with either hand or power tools. Like coaster, I use a new blade on a box cutter to rough shape, then on to the spindle sander. I finish with a sanding block and 150 grit sandpaper. I have used files, but it's very hard to keep from tearing up the cork with files and rasps unless they are very fine.
One other thing. If you have trouble keeping the cork from tearing when you're cutting the pieces to glue to your bow, you are going to have trouble shaping it. I bought a 1/4th inch thick cork 12" tile once, it was just too crumbly to use on a bow handle. What I now use is 1/8th inch cork I bought at a craft store off a roll. It is much finer grained and easier to work. I do have to glue several layers up most of the time.
I've used both TB3 and super glue gel on the cork and both work well. The glue joints are much harder than the cork. I like the soft feel of cork so I don't fill it with super glue. I've never sealed a cork handle and to my knowledge have never had one come off.
Good luck,
George