Rob's jig for drilling the dowel used in his wood hinge DVD is the key to a successful hinge.  Chuck the jig in a drill and while it is spinning push your 1/4 dowel into the drill bit.  The jig centres the dowel before it engages the 1/16" bit, the result is a perfectly centered hole. 

Made from aluminium, the drill bit is held in place with a set screw so it can be replaced if broken or dull.