Homebrew PCBs

I use a Dremel to do my drilling by hand.  What does everyone use for 
bits?  i found a nice Dremel brand engraver bit that drills fairly 
small holes well, but not as small as my vias.  

Also are you drilling before etching, after etching?  Do you etch the 
hole in the pads to guide the drill bit or not?  I seem to rip alot of 
pads off during the drilling itself on both sides >< .