[ruck'n'reefer]

I just cut 2- 5/8 " holes in 1/8 " glass. I used a dremel with a tile cutting bit #562 (not a diamond bit) with the cutting guide (router-type attachment). It took me 5 minutes for both including set up and marking the holes. Very easy, and quite precise.
I clamped the glass to my workmate, lined the marked hole on the glass up with a hole in the workmate... then freehanded the hole a setting 4 of 5. I added (splashed) a small amount of water. I drilled straight thru then followed the line. I cut out a circular plug. There is no evidence of wear on the bit.

This seemed easy and faster than using the prescibed diamond bit.
Hope that made sense.

Rob