I've had trouble finding a tool that would cut out the indention for the "lip" on vintage style telecaster string ferrules. I wanted something similar to Stew-Mac's peghead bushing reamer, but they don't offer one that's the correct size for string ferrules (3/8" OD with 5/16" guide). See photo #1. I ended up making one myself, and it was easier than I thought it would be. I bought 12" piece of 3/8" stainless steel round bar from the local hardware store, brought it home and cut off a 2.5" section. Then I chucked it into my drill press and carefully machined the last 1/4" section down to a hair under 5/16" diameter (starting with a hacksaw blade and cleaning it up with a file then emory cloth). Next, using a Dremmel tool with a small grinding stone, I cut three angled grooves into the side of the step (roughly 1/16" deep). I finished shaping the "teeth" with several small needle files. I also tapered the bottom of the guide section with a file, so it goes into the hole easier. After drilling the 1/8" holes for the strings, I drill 5/16" dia. holes (lining them up with a template I made from Corian scrap). Then I use this tool to drill the 3/8" dia. x 1/16" deep cutout for the ferrule "lip". See photo #3. It works really well, even if this tool's not quite as pretty as the store-bought stuff. I think it took maybe 20-30 minutes to make. Just thought I'd pass this info along in case anyone else out there might benefit from it.