Having concerns is a good thing!
Better safe than sorry.
Well it definitely sounds like you are taking the proper precautions plus some. If you were really worried about it, wearing latex gloves would work just fine and not restrict your fingers/hands too much. We have also noticed how smelly fossils can be when worked. I worked a crazy lace agate one time that was white but it turned the cab water red like it was bleeding.
You haven't stated yet but I'm going to guess that you are using a cabochon machine with diamond carbide wheels? If so, before starting up the machine, spray down the wheels really well that way it doesn't kick up any dust.
One must ALWAYS work stones wet....very important! I always make sure to cleanup the machine after using it, never let the rock water sit as it will definitely grow some nasty stuff. I never keep the old water sitting around! One can always dispose of it in a spot/hole in the dirt where it wont get messed with and can be covered over. Also keep a hand towel or two handy for wiping up any messes then just toss the towel into the washer. That way when it dries, the dust doesn't end up every where.
You got rid of the dino poop with the yellow looking bone in it? I would have loved to have seen that piece, sounds like it would have make a great cabochon in my opinion. I did some dino poop once that looked like it had colored berries (red, pink and yellow) in it. I have even made a few guitar picks from some.
Is a very
poopular stone.
I would love to see some of your stone work if you have pics of any.