"sinister" wrote in message
...
I need to remove some deep-set nails. They're the type without large
heads, and they look like they must have been placed with a nail gun,
because the heads are (say) 1/8" into the wood.

One method I thought of was some kind of drill bit that would drill out a
small circle, except it would have a hole where the nail is so the bit
wouldn't press on the nail itself.

Thanks to everyone for the replies.

I ended up getting a nail puller with a really wide end (over an inch) and
used that to pry the top piece of wood up. Didn't mark up the panelling too
bad.