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Are you looking to cut sheets into rectangles, or to do sculpting for scenery.If the former, even at 2 inches you can always use a small hand saw or even a long steak knife and a ruler.If the latter - stay tuned to @Ed Kapuscinski 's thread on hotwire cutting with a soldering iron.
Also, according to one of my coworkers, electric carving knives are GREAT. I'd imagine they get messy, but they do a good job. He recommended hitting up a thrift store for a used one.
Did I ever say that I'm cheap?