A router with a trammel base and using a 1/4 inch bit will cut perfect 
holes of any size quickly in aluminum.  You can buy a trammel base or 
make an acrylic base for the router and drill a 1/8 inch pivot hole in 
the base at the proper radius.  A trim router is a perfect size to use 
and you can buy one for about $25 bucks at Harbor Fright (intentional 
mis-spelling.)  If you want to spend a few more bucks, get one with a 
plunge base.  Secure a sacrificial piece of ply or particle board under 
the aluminum panel sheet and make sure the hole for the pivot pin goes 
through the aluminum and well into the sacrificial piece.  I use a 
couple of pieces of double side tape to stick the portion that will be 
cut out to the underlying particle board.  This keeps the cutout from 
rotating wildly as the bit finishes the cut.  This will give you holes 
that are the equal of CNC holes.  Always cut a test hole in scrap to 
make sure your technique and measurements are correct.  For .125 I would 
make several slow shallow passes.  If you are cutting instrument holes 
in 1/4 inch ply--a Dremel tool with 1/8 inch router bit has enough power 
to rout them.  I use this setup for cutting sound holes in ukuleles.  Be 
careful, move slowly and use eye protection whenever using a router.... 
and.... clamp the assembly to your table to make sure nothing can move. 
. 
Rich Hartwig
Waunakee WI

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