For ~3" holes, I've had good luck with with AL plate up to 2" thick by first using the DRO to drill a tight circular pattern of holes followed-up with a bi-metal hole saw (the kind used to drill door knob holes). Of course, you have to start-out undersized and bore-out afterward. For smaller holes, I have drill bits up to 1-1/2 so that is the starting point followed by traditional boring to size.
Ray
Ray