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Dalee,Sorry about coming in late with a bit of advice.Almost the easiest way to get your flat bottomed hole is to use a trick that is frowned upon, but can get you to where you need to be.Drill down as far as the hole needs to be with one size smaller drill than what is needed, then, horror of horrors, mount up a milling cutter of the correct diameter into the chuck and just drill down to the overall depth required. If you take it very steady, that will clean up the bore enough for a little engine such as this, and give you the flat bottom hole that you desire.I do this a lot when I am putting in counter bores for cap head screws. I mention this because if you are not taking a lot of material out, then there is not much force on the cutter to cause it to slip in the chuck, which is what would happen if you tried to do full scale milling with a mill cutter in a drill chuck.Another point, if you do use this tip, if you can, always try to use a centre cutting mill cutter.With regards to holding small drills. When your finances allow, invest a bit of money in a PIN CHUCK, it will be money very well spent, not just for use on the mill, but on all your machinery that you can drill with, and even by hand using at times, just to do a bit of hole cleaning out or fine countersinking.http://www.axminster.co.uk/axminster-pin-chuck-set-prod33442/?sessionid=qolYou might also find a set of PIN VICES very handy at times, but not for holding things when mounted into another chuck.http://www.axminster.co.uk/axminster-pin-vice-set-prod33440/?sessionid=qolJohn