[sm=lol.gif] OK, the second one is kind of funny. If you put a square bit in a collet and turn on the drill, the motion of the bit becomes "round". How does it create a "square" corner?

Honestly, I think the picture is just not accurately showing how the thing works. I''ve seen something similar and it was a drill bit inside a square sleeve that basically acted as a chisel to square the corners.