Gossmer,
Regarding your "Ideally I should cut it as close to the width I need though? It should unroll and lay nice and easy filling the gap." the answers is of course yes as its cheaper and more air trapped in insulation so better insulation.
BUT, when I did it, my Joists never stayed exactly 40cm apart, I could not cut straight, I had limited time, the loft is too hot or too cold to work in (or somehow both), and I did not want any air gaps whatsoever between the jousts and the insulation (usually where I cut a bit narrow and the joists were a bit far apart). So in the end I cut it wide enough to garentee that even if my cutting was bad it fitted snugly without any airgaps.
Also I found having it a tight fitting (rather than unroll and lay nice and easy) meant that the friction between the sides of the joists and the insulation kept it nice and flat rather than it forming a domed surface.
However, I think you and I are over thinking this as you will quickly find your method when you start. :> Buy the insulation, some good air filters (you do not want to inhale this stuff) and perhaps a paper suit and you will find it a easy (if uncomfortable) job that does make an improvement to your house.
sfk