[quote author="fum"]I use a variable speed jigsaw( about $40 from your local tool house), with a metal cutting blade on mine. Works really well for me.
Once you've got the square marked, drill a hole large enough for the jigsaw blade in opposite corners ( two holes) Cut each way from each hole, and whala, instant perfect square.
ju[/quote]
I use a technique similar to this. But I drill a bunch of holes close together... and no matter what, I keep my square hole 1 or 2mm smaller than the part that needs to go in. Then I FILE until the part fits snugly.
The keyword here is PATIENCE.... PATIENCE... measure twice, then file, then try the part, then file again, repeat .....
If you're getting tired, or losing patience. STOP. Come back the next day to work on it.
For big holes, up to 1", I use step drill bit. 7/8" is the perfect hole for my TRS/XLR combo jacks.
I'm sorry but Dremel won't cut it *pardon the pun*. Get a small bench drill press... about $80. I only use Dremel for emergency 1/8" holes I forgot to drill on my bench drill press... or drilling a bigger hole in the PCB for a component to fit.
Invest also in a digital caliper. Cheap around $16.