Martha Stewart did a show the other day showing how to jazz up jeans and jackets with rhinestones and she used the tool and set them. I would be afraid the glue wouldn't hold.
Oh this is right up my alley!!! I just got this great thing called BeJeweler for Christmas and it is great for adding rhinestones to anythiing!!!! It has a tip that heats up and you put the jewel in it and the jewel already has glue on it, so when you put it on the tip it heats and then you just put it where you want it!