3/32, not 3/16 hinges

Dubro makes some small hinge points and if you are worried about the wood breaking out with the 1/8" ones, you could add one or two hinges and use the smaller ones. It would give you the same pull strength, maybe more, and give you some extra meat to hold them.

The issue with the 1/8" points in 1/4" wood is that keeping the hole straight becomes absolutely mandatory. A drill press and a good vise are a must. THe drill jig can center, but you need something to make sure it doesnt run off center of the piece being drilled. Also as you are pushing into a blind hole, the hydrilic pressure could blow out the side if you are not careful and use a very light coating of glue/epoxy. IF the hole is straight and the fit is good, the thin material will hold up OK as long as it isn't damaged in the setting of the hinge. Once the glue dries up, the hole is reinforced by the glue.

Don