I just found this list of woods that have toxic effects, and surprisingly quite a few are used to make reel seat inserts. It goes to show that it always pays to use a respirator when working with any type of woods, and a dust collection system is also something to be considered.
http://www.ci.tucson.az.us/arthazards/wood2.html

You can use your shop vac or a box fan to help pull the dust and chips away from the operator. Here's a very low cost system that ANYONE can incorporate into their woodworking shop for less than $20:
http://www.woodzone.com/tips/dustcollect.htm

There are dozens of other ideas for dust collection by Googling "home made dust collection system"

Joe