I figured some of you would like this.
So, things are fairly settled in my new house and I decided to utilize my extra 'work room' to remake my 'demo' spinner controller in pine and have it be all nice. So I get to work, get the thing cut (and learn that a jigsaw != good at doing long straight lines), drill out the hole for the spinner (dead center), stain, polyurethane, etc. Note...I had to use a flat wood bit to drill the spinner shaft hole...AND I drilled out a bit more on the back of the top board witha larger bit also to stop potential rubbing/problems (it's an Oscar Spinner).
Great, I put my crappy flat wood drill bits back into the nice black and decker fabric holder, wrap it up tight - oh...look, two are facing the wrong direction. No biggie...oh wow, nice little flaps to cover the bits so I dont hurt my hands...great. Get it all sealed up, roll it up and velcro it. Put it...uhm....yeah.....
Three weeks pass during which I do the staining and the poly (and some other 'house' woodwork stuff I needed to stain/poly). Friday night, after doing another bit o'housework I decide 'Lets drill out those button holes, and slap this thing together for the people coming over tomorrow...
...the flat drill bits are gone. Totally and completely GONE. There were 10 or so bits in this thing, it was the size of a paper towel roll when rolled up, black and orange. It's COMPLETELY GONE. I cant find them. So now I have by spinner thing...with no button holes. Mind you, I spent like 15$ on these things - and at Home Depot ONE drill bit 1 1/4 inch costs 8$ or so.
Just a .... 'yeah figures' story :/. With woodworking.

(I completely cleaned up the work room...still can't find the damn things although the wife is happy that the room is cleaned up...)