I've just never done it before and I'm going to have to - as I bought the same T2 fence to install on my older craftsman contractor saw. Any particular recommendation(s) - both type of bit and size for this kind of project?
Also, I'm assuming I can use a hand-held power drill for this, correct?
I used titanium-nitride coated twist drills from Harbor Freight. Since HF is hardly the highest quality stuff, this means even cheaper bits will work. The cast iron is surprisingly easy to drill through. As other have said, start with a small bit and work your way up using a LOT OF OIL. The oil will keep the bits from overheating and dulling.
The front screws are 3/8" diameter. The rail has holes that are countersunk for the flat head screws included in the T2 kit. The actual hole in the rail is larger than 3/8" so you can't use it as a guide for the 3/8" drill bit. I used a center punch and eyeballed the center of the hole.
To mount the rear rail I used the included 7/16" socket-head bolts/washers/nuts.
Using the two existing holes (one front, one back)made it a lot easier to mount it. I placed one front rail screw in the existing hole and that held the rail in place while I "teeter-tottered" the rail on the screw to align it at both ends and then clamped the ends to the table. The negative to using the existing holes is that the tape on the rail must be repositioned (I haven't done that yet).
The existing hole I used for the rear rail was too small for the 7/16" bolt, so I had to drill it larger and slightly off-center (higher up) from the existing hole. I clamped the rear rail in place and used the 7/16" hole in the rail as a guide to drill the hole.
Yes, I did use a hand drill and there was plenty of power. For the front rail, I tipped the saw onto its rear side so I was drilling vertically instead of horizontally to make it easier. Then I tipped it onto the front for the rear rail.
Make sure to check that none of the screw holes will be in a web area of the cast iron. Mine didn't have that problem, but I noticed that if I had aligned the tape pointer (in the existing location) with the blade at the zero mark there would have been interference with some of the webbing. I don't know how many variations of cast-iron tables Sears made over the years, so "your results may vary" (as the ads say).