Thanks guys.
I wanted to soak in and think about what you guys said before I wrote back.
Then I use an automatic center punch (sometimes I pop it 2 or 3 times to get a nice center mark). Then I drill pilot holes with 1/16" bit (size not critical) with the drill press belts set for next to slowest speed. Then use the correct size bit.
If you get it laid out accurately, center punch accurately, and use a small pilot bit, I think you should get good results. Hopefully there is no side play/wobble in your chuck.
The biggest mistake you can make is use a typical chisel point drill bit. The leading edge is usually 2-3 times wider than the center punch and it has a tendency to wander a little before it settles in - which is why a small pilot hole slightly larger than the chisel point width works well. The best bits to use on sheet metal are brad point bits.
My lay out is right on the money, those Incra Rules are working great for me, so easy and much faster than anything I've ever tried for lay out before. I hit the center mark cross hairs once with the center punch and then check to make sure it's - exactly - on my mark, then hit it a couple of more times. Also I found if it's not - exactly - centered on the cross hair marks, I can move it slightly by tilting my punch pointing in the direction it needs to go and hit it again. This part I think is fine.
I think where I'm going wrong is I'm using an Erwin 3/16", 135 deg. chisle point bit (got the set at home depot) for my pilot hole because the pilot on my step drill is 3/16". Also my drill press is a 5 speed (620 to 3100), and I was using the highest speed. What speed/s should I use?
I'm going to try the brad point bits, they sound like a good option. I seem to remember seeing them at the big box stores, If not Rockler and McMaster-Carr have them.
I'm also going to make a fence/back stop thats the full hight of the chassis. I can bolt it to the slots in the table and use a couple of those screw down fast action lever hold down shop clamps.
When using a knock out punch, the hole you drilled for the pull stud can wonder as described earlier and any slop can be compounded more depending on where the pull stud centers.The trick to making rows of punched holes nice and in a row, drill your stud hole bigger, and just finger tight the stud until the receiver and the die touch the chassis. now measure the distance from the die to the edge of the chassis,and snug it till the die bites. I usually will scribe a line and align the outside of the die to the line.If you are punching holes for a tube socket, punch the hole first, then use a socket to mark the mounting screw holes. That way if you are off laterally your screws will still line up without having to "egg out" the big socket hole.
These are all "tricks" I've used and still do.
One of the HARDEST tricks to do is to RELAX! NOTHING IS PERFECT!
Ray, you and Ritchie both mentioned using a hand power drill, I'm gonna try that also.
I've not had a problem with any tube sockets, - yet -, but I did stumble across the option of using a larger pilot hole and finger tighting the knock out punch in place and it does work great. And yes, I'm punching the socket first, then go back and use the tube socket to mark the mounting holes. It's been working great also.
One of the companys I worked for as a carpenter years ago made me their punch list guy for a year or two, and I've finish trimmed and tape a lot of dry wall also. I had to fix/make right just about anything to everything or the boss did'nt get the last payout from the job. So I still have a hard time relaxing if some thing I do is not right. Your right, most people wont see it, untill you point it out to them, but I do. My wife still finds it funny when we go some where and I'm looking around at all the "lines" in the room, doors, windows, trim, cabinets, hardware, outlets, paint jobs, walls, ect... I don't do it on purpose.
Any way thanks guys for the input. I think all of it will be very helpfull to me!
I knew you guys would set me straight.

Thanks, Brad