Wood Router clearing chips

Ive just finsihed a new wood router to make model parts. It is 16"x32" and I
want to do most of my cutting with the smallest possible bit- Id like a
laser, but thats another project. Im going to cut mostly thin stuff- 3mm
plywood, 1/16 basswood and some plastic sheet.

I have ground a single lip 1/16" dia tools and it cuts very well at about 15
in/min and .100" deep But it leaves the cut path tightly packed with chips.
It cant be cutting clean with all those old chips stuck there.

What will help clear the chips? I treid slower feeds, but then the chips
burn and smoke, obviously worse. I tried faster and the tool seems to 'swin'
around a bit, causing errors in the cut line.

Pic of the machine are at http://plsntcov.8m.com/CNCrouter.htm

ron ginger