If you need to make a fair amount of collars, you may want to look into a carbide tipped holesaw otherwise get a good bi-metal or high speed steel holesaw. Just remember to use a fair amount of oil to clear the chips and keep things cool, heat will be your worst enemy. If you only need a few collars then the cost of a holesaw, tap and material may be more than buying the collars out-rite.
Regarding question #5, could elaberate on it a little more? I see it as a threaded shaft, but do you want to physically attach it to something rigid or pass it thru a bearing pressed into a plate.
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