The $15.00 price is cheap. If you can get it done for that go for it.
Drilling metal isn't something to be afraid of. You just have to respect the machine and make sure you have the workpiece clamped properly.
If it's long enough you should make sure to hang the end of the workpiece off the back so it can stop against the left side of the column. That way if it grabs the column will stop it from coming around at you.
Hole saws won't work to enlarge a hole unless you can rig up a pilot for it. Ideally you need a core drill or a reamer but a standard drill bit will work fine. 200 rpm's is probably slow enough and you should just work slowly and relieve the cut frequently. Any good oil will help keep things cooler.
Where are you at? If you were in West Michigan I would have you come to my shop and we would do it for you for free.
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