According to the following link, Fruitnut seems to be correct. The link has a pretty good diagram (third illustration down).
http://pharamcytimes.com/tag/plants-conducting-elements/
In that sense xylem is just the wood. This surprised me because I knew xlyem transported water/nutrients from roots to foliage, but I thought this occurred only on the outside bark. This makes sense to me (in one sense) because I've seen trees completely hollowed out by rot, but still alive, with just a really thick layer of bark. However, in that case, there must be just enough xylem tissue in the thick bark to transport water/nutrients back up the tree.
A few years ago I completely girdled a couple elm trees (to kill them) but I was surprised they made it through two summers before they died. Upon reflection, this would seem to confirm the xylem is in the wood itself, else how would the tree remain alive for two summers?
Referring back to the illustration I linked above and applying it to Matt's pic of the open bud flaps, the vascular cambium is indeed what Fruitnut refers to. It's more or less invisible (or indistinguishable) from the xylem (blond wood on the little trunk) and the blond colored phloem on the inside of the bark flaps. It would make sense it's "invisible" if it's only a couple cells thick, as fruitnut suggests.
So the order from outside to inside seems to be: cork bark (we all know that is brown), cork cambium (maybe that's the green stuff, but that's not the type of cambium which concerns grafters), blond colored phloem (fairly thick layer), invisible vascular cambium (for grafters, this is where the "pay dirt" is, even though the pay dirt is extremely thin), the xylem (which is basically the wood-the "sap wood" in illustration Tony provided). Lastly is the heart wood (which is the very core of the tree and probably it's only function is structural strength).
Thanks for all the responses. If I have this right, I've definitely learned something. Either way, the cambium which concerns grafters is not green, nor is it a dark line (but it can be just "inside" the green on brand new shoots, i.e. current season growth). I bet I've read a hundred times the cambium is green (and repeated it some myself) which is incorrect. I find that somewhat amazing. That is, that the general consensus of even trusted publications can be incorrect on something which should be a fairly straightforward anatomy question.