Don't use a paddle bit. If the pilot point isn't supported, they'll flop around inside the hole and bugger things up. The full circle Forstner bit is the best solution. As was said above, once the perimeter of the bit enters the wood, it won't wander. If you do try a paddle bit, get one that has points at the outer part of the paddle. It'll cut a cleaner hole at the edge. The flat ones have a tendency to chip the edge of the hole.
