Note: This is a belated post covering some work done a couple of weeks ago.We decided to try building our payload container out of foam insulation board. This seemed like a decent solution as it would do a good job of retaining heat, was rather light, and would absorb some of the impact.
The idea was to glue several layers together into a big cube. I figured that we could cut sections out of each layer to fit the components snugly instead of having a big cavity for things to be knocked loose in on impact.
In order to cut the foam boards, I constructed a brace holding a section of
nichrome wire. When passing electricity through nichrome wire, it heats up just enough to melt its way through the foam. The brace was to be bolted to the end of my workbench in various ways and at different angles to aid in the cutting.
To power the cutter, I simply hooked the ends of the wire up to a car battery charger. You have to use the old manual style as the automatic ones won't give the proper amount of juice. If you can find one that has a switch to go between 2 and 10 amps, even better. Use 10 amps for long, faster (actually still quite slow) cuts, whereas you can use the 2 amp setting to do slow detailed work without having the foam melt and shrink too far away from the heat.
There is one more adjustment that I found to be good. I added a spring at one end of the nichrome wire. The wire can easily break if too much force is applied while hot. For example, if you get impatient and try to cut too fast. The spring allows a little give and you can visually see that you are pushing it too fast. It also acts as a buffer and allows for a more continuously smooth cut with a few unintentional jerky movements. For example, sometimes the foam may stick on something just a little as you are sliding it across the surface.
The only drawback to using a spring is that it does buffer the movement. The spring stretches as you move too quickly, then it doesn't necessarily settle to a stop where you expect it to.

Here I am cutting a section out for the digital camera. I traced around it with a pencil before cutting. After cutting out the basic shape that was traced, I needed to make a few minor adjustments, but the camera ended up fitting quite snugly in the hole.

At this point we have actually tried several iterations of the camera housing. In this picture you see Greg working on the second one.

It took some practice to get the viewing angle right for the camera. Here you can see one of our tests with the camera inside the layer of foam. In it you can see the board on the edges of the image.

I made the cutting frame removable for hand cutting strange angles as well. This was a rather difficult part to carve out. I later came up with a much better way to do it. As it turns out, you can block off your edges with masking tape. The wire does not get hot enough to cut it immediately and so you can simply ride the line of tape. In this case, I ended up masking off the wedge on both sides of the board and it worked infinitely better. When I was done, I had nice strait edges.