It seems the router is really the only way to go. I have heard of people trying with rotary tools, and saint, I think, even mentioned trying such in the Project Arcade book, but it all comes down to just being plain difficult.
I fortunately had a friend with a router, so I borrowed his. Though the bit was still a purchase I'd rather not have had to make. Router bits are some seriously expensive little doo hickies. I nearly had a heart attack when I saw some of the prices on those things. I now HAVE to make more cabinets just to justify purchasing that darn thing.

[EDIT]
T-Molding I bought at a local woodwoorking shop for $10 /25'. It cost more than the online sources, but I am just too darn impatient to order online.