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First, the craft foam accents suck. It didn't much matter what I tried, they would not level out with the cork, but insisted on standing a tad above it.
Kevin there's some tricks to using the craft foam that will work for ya. One thing is to make sure you coat the foam rings very well with epoxy when you glue them up. If they are saturated well with epoxy then it takes a lot of the "sponginess" out of them so they sand at a more even rate with the cork. The other thing you can do if they are still sticking up a bit over the cork is to wrap the sandpaper around a popsicle stick and use the thin edge of the popsicle stick to sand down just the thin foam flush with the cork.