You can work with even smaller bits, but finding a chuck that can hold a
> #80 drill, without running 2x the drills size in runout is something
> I've yet to find. :(



You know about these?  Very small solid carbide bits with 1/8th inch
shanks.  These are not expensive (if you shop around).   They are typically
sold mounted in a block that holds 50 bits.  The block fits in some
automated bit changer.  In industry the bits are re-sharpened a few times.
Buying the resharpend ones costs less, about $20 for a block of 50
used/resharpened bits

These bits even work in a $75 Harbor Freight drill press a couple times
without breaking,

https://www.adafruit.com/products/2118
http://www.ebay.com/itm/Lot-of-50-Resharpened
<http://www.ebay.com/itm/Lot-of-50-Resharpened-Micro-Carbide-PCB-Drill-Bits-0320-67-/172061731231>

-- 

Chris Albertson
Redondo Beach, California
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