David,
Yes, all of your assumptions are correct.
Basicly there are two plates with a hole(s) of your choice drilled completely thru. For my home brewed version I used a scrap piece of aluminum for the bottom cutting plate and a piece of clear plastic that used to be paperclip holder for the punch guide (I think I put them to better use here) both of which are about an 1/8" thick. First, I drilled two holes thru both plates along the outside edge so that I could insert two "registration pins" to keep the center cutting hole(s) aligned. (I got luckey with this - I happened to find a screw shank and a drill bit with the same size diameter - It took me a while but I finally found one)
Then I chucked the drill bit up in the drill press and went to town drilling the cutting hole - (SAME SIZE hole thru both the top and bottom plates).
After I drilled the hole, I sacraficed the bit by snaping off the cutting threads and grinding both ends flat to create the punch.
To punch a hole insert the card stock between the two plates and tap the punch with a hammer. That it! A nice sharp clean krisp hole or disk depending on what you want.
P.S. Don't knock nail clippers.... They have a place too
