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You can risk ruining a forstner bit which will cost you around $80. I've got a 3.5" one for doing plumbing. Otherwise you can get a high quality hole saw (Starrett) for around $15 and another $11 for the arbor. I've had pretty good luck with these.
There is a tool called a trepanning tool that is used in the machining industy. It is called VAL-CUT trepanning tool made by SPI. They will fit a drill press with a 1/2" shank.
They are hard to find. You need to get them from a good machine tool supplier. The part number you need is 80-001-1
it is 159.00. I use this on my BPT machine. It makes nice custom washers too.
T.J.
If not a 3" bit, hows about a torch? /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif /forums/images/graemlins/rotfl.gif Seriously though, how about a jig saw, with a circular, scrolling attachment? Or even a sawsall.....