I prefer this bit, a carbide tipped 7mm brad point. It has a grind that really breaks up the curls and the dust works it way out quite easily. It does drill a little oversize, but I glue in with epoxy and it works just right. A high speed drill I had before was just too tight on the brass tube.
http://www.woodcraft.com/family.aspx?familyid=791
scroll down to see the individual bits, look for 07E71 part number.
Rich