Dan, Dan the high tech man.   I don't see why it wouldn't. All you need is a way to hold the pencil end rigid, and repeatable, and rout the flex shaft to turn it. I bet you work for NASA.  

Brett

Not bad but a little pricey.

http://www.macrotechnologies.com/high_speed_air_spindle_mini_mac.htm

Dan

look at cnccookbook.com and see what he does with is dremel

Marcel

There is a lot of room between $5000 and ripping B&D off.

Try using a $119 router with a 1/8 inch collet adapter.  It will last forever, and you won't be putting yourself in a position that can be viewed as dishonest.