I like to drill two to three holes in line with each other, all a slightl smaller diameter than the thickness of the tang.
This will give you three holes in a row, centered in the handle stock, with "webs" between each other.
Then I usually take a smaller bit and carefully drill out the "webbing" between holes.
Once that's done, I use a series of files to make the hole rectangular and to size.
My hidden tang knives have a tapering tang...meaning it's close to the width of the ricasso area of the blade at the shoulders, and then gradually tapers down to the end thickness. Because of this, I would still have to file the hole after using a mortising bit.
It would save time though.
Nick
[This message has been edited by NickWheeler (edited 01-13-2001).]