Semi-homebrew PCB Router W/X-Y Table?

I just acquired a few New England Affiliated Technologies X-Y tables.
I think the company was bought out and their part numbering schemes
changed, but they are similar to the XY-8080 listed on their website
(www.neat.com) and described in a PDF. I also got the
driver/controllers for them (Oregon Microsystems 10 microsteps/step
units). I know quite a bit about electronics, stepper motors,
software, and PC's. I once did some interesting work with converting
Gerber files to an antiquated automatic insertion machine for a
company I worked for, under the direction of manufacturing and PCB
engineers. I don't, however, know much about CNC. Gee, I wish my
grandfather was still around, a foreman of a machine shop.

My needs are pretty simple: I'd like to build a device to "route" PCB
patterns from HP-GL or Postscript output. Maybe, do the drilling,
too. And, maybe, do a little engraving on brass. I know its overkill,
to say the least, to do this with this level of equipment, but, hey,
this is what I've got to work with.

Questions (Answers appreciated!!)

1. Is a Dremel on the Z axis really going to be able to "cut it"? Can
it really take constant use?

2. Would it be totally stupid to get a "china cheap" drill press and
mount the table to the bottom plate? I have some ideas for "pulling
down" the drill press with a stepper and a jackscrew for drilling
holes.

3. I found a few pieces of software on the 'Net that seem like they
could control these things for PCB and engraving. Is anybody doing
anything similar. What do you use?

I recently sold one of these on eBay (search eBay completed items
for "CNC Table steppers", there are pics) but I'm a little nervous
about buyers knowing what they're doing. Apparently, it's OK to
mention stuff for sale in this group. I'd rather sell to people who
know what they are doing. If you're reading this, you probably do.
So, if anyone is interested, email me.