Indeed it does, Jaydee.

You know what they say about imitation being a form of flattery...
I tried the dremel jig, and after a half hour of grinding, I had four notches partially done on one of the blocks. It would have probably taken me a weekend of work and a whole lot of cut off wheels, so I gave up and mooched some time on a mill from my former high school industrial tech teacher (a real good guy).
The jig in action:
The melted plastic liner on the bottom of the block after 30 minutes of dremeling (I had to pry the block off of the wooden jig. oops)
Here's the after shot of the milled blocks right before I deburred and cleaned them up:
The base thickness inside the milled area is right around 1/8" now. That ought to get plenty of water through. I wish I could have found a viable way to grind those fins in to take advantage of the better heat transfer, but this will do well enough for my purposes. These are only cooling the NF7-S northbridge and GF4TI4200 GPU after all.
See more info on the ongoing project as a whole here:
http://www.basementfreaks.com/member.../watercooling/
I think it's time to start discussing in a new thread.