Got this info from a woodworkers website
Health Concerns:
Spalted wood may still contain spores, therefore it should always be worked and sanded only when wearing a good dust mask or respirator, and using a dust collector. There is medical evidence that substances from decaying wood are a health threat and some allergic reactions and serious lung diseases have been traced to spores and fungi that inhabit rotting wood.
The effect on an individual woodworker however depends on his/her natural tolerance to the spores and fungi, since some individuals are more likely to react to environmental toxins than others. The woodworker should be careful in selecting the species used for making kitchen utensils, food storage containers or toys an infant might chew on, since heat, moisture and time stimulate the release of the toxins found in some of these types of wood.
