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That reamer might be good for opening up holes for pots and switches, but you use that on your tuning peg holes and you'll be sorry. It's too short and too extreme an angle. You'll be making severely cone-shaped holes and the tuner won't snug up right. The proper reamer for doing pegholes is an expensive little rascal from a luthier tool supplier, but if you know what you're looking for the industrial suppliers can usually do the same thing for about 1/3 the price, although you may need a tap handle. They're cheap, though.
But, while StewMac wants ~$100 for a guitar tuner hole reamer with a wooden handle, you can get the right thing from ICS Cutting Tools for $37. It's their part number TPRSF 13/32, as shown in this PDF. But, you'll need a tap handle to turn it with. If you don't already have one, you should be able to get a proper one $8-$10 just about anywhere.
But, while StewMac wants ~$100 for a guitar tuner hole reamer with a wooden handle, you can get the right thing from ICS Cutting Tools for $37. It's their part number TPRSF 13/32, as shown in this PDF. But, you'll need a tap handle to turn it with. If you don't already have one, you should be able to get a proper one $8-$10 just about anywhere.