There is a good set of plans for a dowel cutter in The New Router
Handbook. Don't have the author handy at the moment, but it's for sale
in most hardware centers. If you own a router you should own this book.
The cutter is just a series of stepped holes that feed the stock past
the router bit and turn out finished dowels. Contrary to popular
belief, not everything is on the WEB, . . . yet.
Bugs