Jeff, We have 2 different pegs we use that fit differently, so we need 2 different diameter holes and depths. I draw the crib boards as .125" holes and then using a 7/64" 2F endmill use a profile toolpath-inside the line-with an offset and spiral ramping to get our two diameters(much faster than peck drilling). We run an 1/4" 82degree countersink afterwards.
I wouldn't use a drill bit as rpm's are too high, but I've seen people peck drill with a 1/8" end mill designed for plunging, and even one person(Ron?) who uses a tapered 1/8" ballnose and the said they liked the results. I just use my method as there are many opinions on drilling and the stress on spindle bearings, and the method I use MAY put less stress on the spindle as its basically doing a ramped pocket. My 2 cents
scott P.
2013 Desktop/spindle/VCP 11.5**
Maine