So using those ideas, what I am doing is this.
I created a background grid in ILLY.
Then I created a set of boxes for the top row and to left most column to fill just the inside areas of the grid.
I then copied and pasted the squares over and down to fill up the grid background.
I am then guessing, I will delete the grid, save as EPS and sent to cutter, and get an employee to weed 800 squares.
Oh my, I am glad I charged accordingly for this one.
Seems like I am on the right path from what you all are suggesting. Even you Colorado. One of those jobs I almost regret, but hope it leads to more work with these folks. First time job, eeek.