I think cutting fluid has a higher percentage of sulfur which aids in the cutting, the real deal carbide bits are the cats azz too. I use tap magic on projects I don't have to paint and water soluble cutting oil on projects I do.
Drill your 1/8 pilot hole and then go straight to the 7/16. ..
Yes.Like these? IRWIN Tools Cobalt High-Speed Steel Drill Bit, 29-Piece Metal Index Set (3018002) https://www.amazon.com/dp/B000BO9JMK/ref=cm_sw_r_cp_api_BacdybCB1M21S
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Seriously? I'd be too scared! If it works it works though!
This wil tell you everything you could want to know, although it been covered pretty comprehensively here.
http://www.waybuilder.net/free-ed/R...nist01/FundamentalsOfMachineTools.asp?iNum=48