RE: Drilling wheel hubs out?
What I will often do is to glue a piece of sandpaper to a dowel - in this case, if the hole is 1/4" you could use a 1/8" dowel (or maybe a 3/16" dowel with a shorter piece of sandpaper)
Glue one edge of the sandpaper to the dowel, then wrap it around the dowel. Put the dowel in a drill, insert it into the hole and the centrifugal force will push the sandpaper against the hole.