I use dremel with a variable speed so i can slow it right down, but still its a sledge hammer in the modelling world. its useful, like when im trying make the cockpit area bigger to fit an aftermarket IP or similar, and ive used it for polishing or buffing work at times. Ill sometimes use a buffing disc dippedin car polish to do really fine polishing work. Because its a machine, it can deliver precise sanding angles, and at least give a consistent texture if its not possible to polish everything out....You can get flat, straight surfaces with no curves at the side or droopy bits.
most cutting i use a small hand saw, and most drilling i use the pin vice. if im working metal, ill use it, stick it in the vice and use it like a bench grinder. Ive got a flxible attachment that i sometimes use as well if im scuplting an iregular shape, usually out of wood....an engarving tool basically.
but its a dangerous tool in model making becuse it can be altogether too powerful and too large for most jobs...and thats even at slow speeds
Other tools i use a lot are locksmiths files ...needles file i think they are called, whilst for sanding I use good old rubber or cork block, cut to size and attached to a stick or the wooden end of a paint brush. i know vic has these sanding que tips that are very good, but i cannot find them, so i make do. Nail files are useful, but the fine sanding still needs the paper. Some people go to 4000 grain, but i seldom use finer 2000, the reason is Im just too impatient. ill do the majority of the work with 500-1000, then finish things off with the 2000. ive sometimes used automotive wet and dry, which reduces the grit scratches when i rub it back wet.
An imortant tool for me are the forceps. i use surgical forceps. if you are going to spend big money spend it on two thigs, a good knife and a a good set of forceps. I also would recommend various probes (like dentisits probes) and prongs that you can get from most hobby shops.
I also bought these miniature modelling or sculpting knives for working the filler which Ive found really useful. i of course have two or three widths of masking tape.
Another handy item are brushes...good ones. Terry knows about brushes better than anyone, and no matter how much I try to use the airbrush, i alsways find jobs for the brush brigades. Brushes are another item you should be prepred to spend a bit on. Dinky brushes are very nnoying after a while
clamps are useful and for someone like me with poor eyesight, I finnd a good magnifying glass with light a must have piece of kit as well