Like I suspected, PSA would not accept me paying for an encapsulation and just sending them the book w/ autograph in it (then me sending it back to them cut out). They said I would have to pay twice and recommended I just cut the signature out in the first place. I just went ahead and cut the signature out and sent it in (and filed the book in my library). Including the LOA (which you don't get back) with the signature is good for 30% off the encapsulation as well.
Hopefully this helps someone out in the future.
Thanks again for the replies.
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