I know this is an old thread, but I just wanted to share the bit that I'm using for cutting the button and joystick holes. I'm not sure the name of it, but it's adjustable and works well with laminate. The trick if you have laminate already applied, to cut the top part until the laminate comes off in the size of the hole, then do the rest of the cutting from the underside.
Also, in one of the drill accessories kits I bought, it came with a 1 1/8 (probably a standard size) round sanding bit. Works very nicely for cleaning up the hole after drilling!
The pic is attached. The very top left is a sample hole I cut, then the second hole is one that is in progress. The drill has the sanding bit attached, and the other cross shaped piece is the adjustable hole bit.
If anyone wants one of these adjustable bits, I may be able get them for about $12 shipped! The bit is adjustable from 1 1/16" to about 4". There is also another bit that attaches on the end for cutting holes in really thin material (like just laminate or something).