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I'd go with a pilot hole and then a spade bit, or i don't know if they have hole saws that small, but those would be good too., nice and clean, no cracking.
Leather punch or piece of pipe with a sharpened edge.
punch is best
if you dont have one then
make a roughly round hole of smaller size
use a ball or cone ginding drill bit to enlarge the hole to the wanted size
A spade bit for a drill would dothe job - I would put a piece of scrap wood behind it as a support while drilling.
I suspect that a sheet-metal hand punch is going to be the easiest thing for you to use. They come with a set of differently sized punch tips so you can make whatever size hole you need (up to a point).Here's an example: http://findingking.net/15Pc-Hand-Punch-Set-Sheet-Metal/M/B000RB35HM.htmA Google or Amazon search for "sheet metal hand punch" will get you plenty of choices.