Bob,
It didn't sound like you were getting much/any chatter from the video. I tried something similar a few years back and discovered that my nearly new Dremel tool had a lot of play in the spindle causing it to jump and gouge all over the place. I ended up returning the Dremel for exchange only to find exactly the same thing with the new one.
Since then I don't use it for anything requiring precision.
Has anyone else found this with Dremel or other rotary tools?
I'm curious too why didn't you do the finishing passes on the mill?
-Sparky