There was a recent thread on Tube DIY Asylum begun by Brian Cherry on Hougen Cutters, an interesting alternative to punches.
http://www.audioasylum.com/forums/tubediy/messages/17/178087.htmlI've done almost all my hole-cutting with step bits in a drill press with great results, always sarting with a 1/8" twist drill starter hole. For holes bigger than 1 3/8 I go to Rigid brand hole saws from Home Depot, which likewise did well in 1/8" aluminum. They require lubrication. The step bits don't.
One thing I found about teh step bits is that Hammond steel boxes deform under the pressure it taskes to push the step drill throug. Wood blocks cut to size inside the box surrounding the work are mandatory.