I used a tapered rasp or reamer to widen the hole for the peg head (up from an 8 to a 10mm diameter) and went very slowly. I did use a drill bit for the locator pins.
I guess you could use the packing as a template however I figured it was safer to fill the existing screw holes with a bit of toothpick, sealed with some super glue and re set the machine head locator hole using a drill attachment for a power screwdriver (and a little duct tape as a depth gauge) !
It is very important to make sure you get everything strait as wonky tuners looks silly (boy do I know about that !!) !
My instructors page and www.studiotrax.net for all things recording.
my toons Brought to you by Dr BadGAS
my toons Brought to you by Dr BadGAS