After taking a leap of faith on my old paper pulp and homemade glue mixture, I placed a puck of the material into a glass of water and to my amazement it actually broke down. I don't think that paper pulp will be able to be poured into a mold so well do to its thickness and tendency to soak up water and expand a great deal but here's the good news:
I have decided to try my luck with sawdust and the homemade vinegar glue because this would enable the material to be more of a flowing liquid or at least a semi-smooth paste as opposed to the chunky paper substance I was dealing with earlier. In addition to this I have found that the new material mixture looks a lot more "green" or "recyclable" if you had to imagine what those things would look like.
In addition to testing the "disolvability" of the previous material, I also tried my hand at an initial fire test...it passed but keep in mind holding a piece of the paper material over a tiny lighter flame will be leaps and bounds different from a bonfire setting so expect some pictures of fire in the future...
Until then, here are some initial samples of the new material: