Knarfeng: You're right that epoxies are quite stable and inert... until you heat them up.
Micarta, G-10, Carbon Fiber, etc. are mostly based on a formaldehyde-phenol epoxy, and will give off formaldehyde vapors when you're grinding them. (Same deal with stabilized wood, as Gixxer says.) It's really a good idea to wear a respirator that's specifically designed for this kind of protection. I know that 3M has a special formaldehyde rating for some of their filters, like the one Gixxer uses. (Of course the glass and other fibers that have already been mentioned are just as much a concern. Carbon Fiber is supposed to be especially bad... I'm not going to test that one out for myself.)
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Get a good respirator, and get some good shop ventilation! If you can work outside, do it!