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Any End Mill type bit that has a cutter on the end for the plunge cut.
For thinner material I have been using the Circuit Board Bits that I get on eBay and a 1/4 to 1/8 holder from the roto zip line of bits.
The bit will need to have a cutter at least .8 long.
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The 1/8 inch cutting bit is the most common. Be sure and set for multiple passes I use .250 for max cutting depth. LHR also makes a 3/16 cutting bit.
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I realize your post is old, but where did you find the bit holders? I have searched and searched and have come up empty handed.
Thanks for your time.
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Precisebits.com has some I have been using. They have some that go from 1/2 to 1/8
http://www.precisebits.com/products/..._500.asp?tsPT=
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