Here is a knockoff of the saw I mentioned above. I think the blade ends up sort of melting through the carpet and padding from friction, more than actually sawing. If you work carefully, it leaves a very clean edge that won't ravel. Cuts through the material like butta............. butta, ya got to be careful and slow, so you don't contact the wall above carpet level.
http://www.harborfreight.com/variable-speed-multifunction-power-tool-67537.html
http://www.harborfreight.com/variable-speed-multifunction-power-tool-67537.html
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