Well, I got in some 0.5mm bits, and did some testing on my new x carriage (has slots for screws to hold the board in place instead of using vice grips). I also noticed that one of the z nuts that move the dremel in the up and down direction was loose and causing vibration, which could have been the cause for my messy cuts in the copper. Anyways, I did all that and it looks like that did the trick for fixing it.

Looks better, just need to actually sit down and draw the design for the board that will house the arduino and stepper drivers, and then I can just fiddle with the software forever.

I also uploaded the code for the arduino. It interprets the commands from the computer, and controls the steppers.