Drilling brass with a missaligned pilot hole

I think I would purchase an endmill the size needed. Center cutting. Plunge down to relocate and finish. Center drill after the plunge if material left

If you use an end-mill make sure it is a center cutting. Nice propellers. Good luck with your project
 
If the existing hole is a through hole, you don't need center cut. I think I'd take an 3/16" EM and plunge it, and then offset it and use it like a boring bar just to make sure it didn't get pushed off, then either drill the #7, or bore it to size. And I meant use the EM in a tool holder, not the tailstock, to offset it and use it as a boring bar. You should plunge it with the tailstock, but expect it to not totally correct the runout. Most, by far, but not all.
 
It looks like you are threading the prop.

Have a look at the banner for Keith's video intro

The prop and shaft are tapered

They have a doulble jam nut arrangement with cotter pin on the end to prevent loosening and losing the prop.

http://www.youtube.com/watch?v=kmeu_yHz9Gg



Yes props for full size boats are tapered and keyed. I make boat prop shafts. The op has RC model props witch screw on the shaft.
 
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