I drill on the lathe by hand, usually, unless I want/need a very straight hole.
I don't have a drill blank chuck or a vice made to hold a blank vertically, and I know my drill press does a sloppy job ....
So, I turn my blanks round between centers on my lathe, first.
Then, I chuck it in my 3-jaw chuck (don't have a 4-jaw yet ... too expensive). The 3-jaw will center round stock pretty much automatically.
I have my 7mm bit held in the chuck of a 3/8's inch keyless drill chuck that I have removed from a drill ... it makes a great handle. I hold it BY HAND as I drill through my blanks at around 1200 rpm. The holes are reasonably straight and don't get out of round much but sometimes I get a little oversized at the start.
More recently, when I want a much straighter hole, I pull out my #1mt 3/8's inch chuck (from PSI) and I drill using my tailstock. I've yet to see a hole more than 1mm off from center coming out the back end of a blank.
In any case, I don't really NEED to bother with an accurate hole, as long as it's accurate enough. I can true the blank up to the barrel tube and turn it on the lathe with no problem. It's only after the blank is glued up that I need real accuracy. Till then, it's close enough for government work, and close enough for me.
