No I don't think it would be possible without modifications. There is not enough room between the cutter head and the mandrel. If some how you were to modify the dremel mounting plate to raise it might be possible. I am not at home now to look at it for sure.
Thanks. I haven't bought a pen wizard yet myself. I made my first lidded box yesterday. Need to sand and finish. I'm hoping to post a pic when it is done.