Is there a way to sharpen the bit? I am going to buy another one tomorrow, bbut rather than toss the one I have I was wondering if it could be salvaged?
Yes, bits can be sharpened... if you have the right tools. Usually, router bits are sharpened with small diamond "hones" or files. You might need 2-3 different grits to do the best job and they'll probably run $5-8/ea. It can also be a bit tricky to file consistently at the right angle. If the filing angle varies, the bit won't end up very sharp.
Rather than trying to fix it yourself, I'd suggest one of two things:
1) See if there's a sharpening service in your area that will sharpen the bit for you. Sometimes knife or saw sharpening places will also do router bits... though it's often not profitable for them to do it. I got a 14" 72-tooth saw blade sharpened for less than $20-25, so I wouldn't expect this to cost more than $5-8.
2) Buy a new cutter, but not the shaft/arbor or ball bearings. That should drop the price a bit; maybe up to 50%.
I agree that the router base was not staying in contact. Problem was that the base on the laminate trimmer is so small that it provides very little area for the router to rest on. Unfortunately I wasn't steady enough and hence the gap widened. I intend to go tomorrow and buy a router table. Gives me a good excuse to pick one up anyway. That should solve that problem - there should be plenty of space for the material to rest on while I feed it through the router.
A cheap router table may be just as bad, or worse, than trying to hand-hold the router. They tend to have small tables, which can make balancing a large piece of wood tricky. To be honest, I wouldn't expect that hand-holding a laminate trimmer should be that difficult. You might be better off investing in a different router! This should really be the sort of work where a laminate trimmer or other small router shines!
Let me ask a silly question: what technique are you using to route your panel? Do you have it clamped to something secure, like a workbench? Is the board mounted horizontally, with the router sitting on top of it? Do you have both hands on the router? Are you concentrating on keeping it flat on the board you're routing, rather than worrying about whether the ball-bearing is in contact with the edge of the board?
My only question is that you said to get a bearing that would leave 1/16 " from the bearing to the end of the blade. The T molding slot has to be 3/8 deep so was the reason for doing a pass at 1/16 just to see if it worked correctly?
Yes. A 1/16th slot should be well within the capability of any router. If you can't cut a 1/16th inch slot without burning, then the bit is definitely dull! If you don't have a bearing that'll give you a 1/16th inch cut, use whatever you've got that will give you a shallow cut.
It is also possible that the router is spinning at the wrong speed. The wood is MDF and the spinner speeds at whatever speed is needed for laminate ( I am sure the manual says but I am just not sure). What should the proper RPM range be for 3/4 MDF?
Don't know off the top of my head. The larger the diameter of the bit, the slower it should turn. Does your trim router have adjustable speed? Since trim routers are usually used with narrow flush-cut bits, they're probably spinning at 22-25K RPMs. If the slot cutter you're using is only supposed to be used at, say, 18K RPMs that might also explain why you're getting burning. Running the bit too fast generates a lot of friction, which generates heat, which leads to burning...