I also use my dremel, its small and easy to use for things like that and the holes can be made really small, but i have in the past heated a needle using a tealight candle and melted tiny holes in the spoon, the only thing about heating the needle is you have to hold it using some point nosed pliers to prevent your fingers getting burned!!! but then again its really quite easy.

They do not sell the reticulated foam but sell a good substitute called EZ-dry firm. A outdoor foam used in outdoor furniture. Reticulated is primarily used in heating and cooling system filtration.

http://www.garysupholstery.com/marineupholsteryfoam.html

Back to this subject of foam.  I looked into Gary's and started asking questions.  I plan on using a six inch block of foam every now and again for additional puppet details but don't find it cost effective to get their whole roll of 6" foam as it is quite expensive.  Did you just buy the roll or do you use the foam blocks?