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It'll work fine. For my (now gone layout) I used those 4x4 sterile gauze pads, gave them a coating of crack filler plaster, lots of time to work with the stuff as it takes overnight to dry. I'll most likely do the same on the new layout if I ever get at it
Some hospitals will give away their plaster cloth off cuts too. If you know some one who works in hospital, it's worth asking. They can only say yes or no, right
The Woodland plaster cloth left a rough finish on the top of the Woodland foam risers. May use sticky drywall tape to finish the rest. I tested on a spare piece of riser and worked well, a smooth finish. This is not the usual finish on the foam risers, but I am good with a taping knife, so try it first if you use the risers. The risers are a huge time saver but can be problems at the end where the bridge ends are. On my layout I need to run risers lever for a distance to the bridge ends. Look at the specs on the risers box to see about this. Have fun..
The problem with any Plaster Cloth is that you do need to multi layer it to get both strength and a smooth finish. I use Plaster Cloth as a means of support for a layer of plaster of paris. I then sand (when required) the POP to the finish I want or need.
In hindsight, if you are going to do it that way, why buy plaster cloth at all? Just use any type of gauze or even light hessian as your base for the POP.
Personally, I think trying to make your own plaster cloth is going to be more work than would make it worthwhile.
As for risers etc, I only use the woodlands stuff for curves, otherwise I use foam that I cut to width and build up. You can get a LOT of 1" and 2" risers out of an 8 X 4 sheet of EPS foam, in fact, you would get around 190' of risers from one sheet, assuming you made the risers 2" wide. Even if you only got 150' of risers, how much would it cost you to buy the woodlands stuff for 150' ? I hate to think, but it would be a hell of a lot more than $13 - $15.