Just use the cut off wheels and go slowly. Don't try to cut through the entire thing in one pass. I just graze the surface on the first pass to make a little indent and then start going deeper. For holes just buy the correct hole saw or bit. Saves a lot of headache and you will always get a perfect circle. Harbor Freight makes a cheap hole saw kit.
A good guide to start can be found here.
http://www.virtual-hideout.net/guides/d ... ndex.shtml
How do I use a Dremel?
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