Like Jay I always try to start and finis in a corner. I eliminates the "bump". The smallest blade I normally use is the Olson 2/0R a #70 drill is perfect. Since I stack cut all of my work I use a high speed drill press.
http://www.micromark.com/microlux-3-speed-mini-drill-press,7797.html There are many alternative solutions, but these small bits like to spin fast and need to be controlled , hand drilling was not an option for me.