The guy at Ford in 1969 that welded my frame was not the guy that welded my body I promise! AND a 3/8 probably get about 90% of em, I just love a step bit!
I bought a blasting cabinet from TP Tools and looking through their catalog I found this one.
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It looks like it would work nice with the adjustable depth stop. It is spendy at $129 but if you have a LOT of panels to replace it might be worth it.
http://www.tptools.com/Product.aspx?display_id=2574
I ended up with mill drills from a surplus store. They cost $0.025 each and usually good for about 50+ welds before touching up the tip on a bench grinder. They are HS and colbalt steel. I usually get ones with a very short pilot thats under 1/4". It will step up to 3/8 but doesnt need to be drilled completely thru. A lot of times the sheetmetal will seperate before having to go all the way thru. Just finished a one piece floorpan on a `66 Mustang. The holes drilled into the innder rockers are small enough to just fill in and grind flat. This makes ready for the pan to lay over and spot using the mig without having to drill a hole for penetration. But just one way that happens to work well for me.
I got a tip from MadGyver that has worked great. Instead of dropping $20 for a spot-weld cutter, just go grab a pack of DeWalt pilot point 3/8 drill bits. They work very well. I replaced floor pans, kick panels and rear quarters. I went through 3 of them. Use some lubricating oil and don't spin the drill up too fast.
http://www.amazon.com/DeWalt-DW1924B-8-Inch-Ferrous-Oxide/dp/B00004YME0/ref=sr_1_2?ie=UTF8&s=hi&qid=1202839551&sr=1-2
This one from Eastwood is my preference. It does a great job centering on the spot weld.
http://www.eastwoodco.com/shopping/...temID=1148&itemType=PRODUCT&RS=1&keyword=spot