By Mountain's thread, I assume you mean
this post. Mountain uses Happ's spacer as a template/jig. The "spacer" javeryh refers to it the first post doesn't need to be a circle at all, it just needs to not jut out into the cutting area and support the router. This will enable the bearing on the bit to run along the trackball plate/spacer and the cutting edge to only cut the CP (not the trackball plate).
If you're only going to be routing one trackball hole, I would use the plate or spacer as your jig as Mountain did. If you're going to be making lots of trackball holes, I think this is a fine idea and you'll have a great jig. Just to clarify, to make an MDF jig, for step 3, you're going to need to use the pattern or flush-trim bit with the mounting plate or trackball spacer as the guide.