Chuck,
I found 1 1/16" Fortsner bits originally from Highland Hardware in Atlanta, maybe $10. I a LOT of k'scopes and drill a 8 1/2" through hole in each of the big ones so that first cheap one dulled up quickly. I bought some from Woodcraft thinking a few cheap ones would work until dull and replace them. I have touched them up some with a file at times. Finally decided that a carbide one would be worth the money to me, and it probably has but it's starting to slow down some.
I start with a 2" square blank in a 4-jaw Vicmark chuck, but I also line up the other end with the center touching the drill bit. I use a Forstner style bit with a 6" extension on it in a drill chuck, #2 mt, in the tail stock. I run the lathe at about 500 rpm, a little faster for soft woods and slower for dense oily woods. I advance the drill pretty rapidly, usually as fast as I can crank the tailstock for most woods. I stop every 1 1/2" or so, crank the bit back out, loosen the tail stock and pull it all the way out to remove chips. I push the whole tailstock to put the bit back in again to get more loose chips. Finally I tighten the tailstock and advance maybe another inch or two, pull it out to clear chips, etc. By using long "shark" jaws on the chuck I don't put the stock all the way in so the bit can push all the way through without drilling the chuck. I just stop when I can see the bit and pull it back.
This sounds slow but I drill maybe 12-24 at a time, takes maybe 75-90 seconds each. I have tried using drill press but it's not as true or as easy to clear chips since it is vertical. I also have tried compressed air to blow out chips but doesn't really work. Keeping the chips out makes it run cooler, which is the secret to making the bit last.