I have not drilled holes that small but I worked in a shop that drilled 60 ft oil well pipe. I don't know why they made it that way but they drilled it with counter rotation. The chuck turned clock wise and the drill turned counter clockwise. They used high pressure water soluble oil . I once saw they guy pull the spade drill bit out and the water oil shot 50 feet to the celling with very high pressure. Well that does not apply to the small holes but the counter rotation with a lathe running at 2000 and the dremel running at 25000 might work very well. The peck drilling might be hard because of the drill hitting the hole and breaking. I would think that using a dial indicator to show when to go to a light touch when you hit the end of the hole. By the way when the machinist drilled the 60 ft long pipe he was +- .020 concentric or better.