Why smaller? I guess the key is to take it slow like with a variable speed drill. Just don't want it to rip.
Great idea on the razor blade though. Thank you.
The shroud of the CDR will cover up the hole you cut. Here is the hole I cut for my CDR

Everytime I've had to cut through the control panel overlay with a drill - the drill was spinning as fast as it could, and I slowly drilled the hole. My thought was that it will cut instead of catch.
When I built a 2 player bartop - I had to cut holes after the artwork was applied:

Notice the lack of 1-player and 2-player buttons. I have no idea how I forgot to add those, but I did.
I used a spade bit with the drill spinning at it's highest speed and slowly cutting the hole. I tried cutting both from the front and from the back and ended up with some wood chips under the artwork. The buttons covered it up nicely. End result:
