My neighbor and I just finished Rev 0.1 of a Dremel CNC. Video: http://www.youtube.com/watch?v=TvKIFszppTI
It's designed to be just good enough to build better parts for itself. Theoretical resolution is 1/200 mm per step. The drives I am using have very little backlash (designed for microscopes)
I also scored a trunk load of hardwood scraps off craigslist, which will be milled by the machine to replace the hand drilled pine bits already on the machine.
Once the machine is done upgrading itself, we're going to build a CNC laser next, using the mill to make parts for it.
Any recommendations for bits to use for PCB etching? I have some small bits, but need to try them in copper.