Try these:
Eastwood Co. - Small Hole Cutter Kit
They work amazingly well.
You can also get a small drill with a clamp on it to fix to the work with out a drill press.
My welding shop (Arcet Equipment in Manassas Va) sells them individually, check ebay, etc.
I also have a drill doctor and it's equally amazing how well a sharpened bit works!
When I worked for Black & Decker / Dewalt, they told me a guy had been killed by a large spade handle drill when he was drilling on a roof with the drill between his legs. When the drill but stuck, the drill twisted and the guy was thrown from the roof. True story? Who knows, but the point is a large drill can be dangerous.