Don't buy a Dremel... Buy a Black and Decker RTX Rotary tool. I have a 3 speed RTX and it has SO much more torque at the lower RPM's that I would never purchase a Dremel. This tool seems so much better constructed than a Dremel and all of the 1/8" bits from a Dremel work just fine.
Also, go ahead and buy a flex shaft, you'll need it.