Good answers. Dull bit, bit loading, too high a speed and cutting with the end (which cuts slower) What I do is a couple of things. ONe is to use a bit smaller than the hole you want. Then rotate it in a circle to enlarge the hole and take really light passes as you get to the size you want. Another option is to use the bigger bit, push it in which almost always leaves some burn, then make a rotary pass lightly to remove the burn. There are cutters out there that do a better job than Dremel cutters. I have one carbide cutter I got from Rio Grande.com that actually cuts and leaves a cleaner hole. Quite expensive but if you do a lot of this would be worth it. If you have a variable speed Dremel slow it down and just take a little longer to do each hole. To keep the skating to a minimum always plunge and move the tool clockwise. This is more of a cutting action and reduces the tendency to skate but it's still there. Gerald gave you good directions on preventing that.