The cheap Harborfrieght bits will be ok for a couple drums but they will get dull very quickly and you will use a lot more effort to drill a hole after just a few holes. You may want to invest in a hole saw for the size you need it wont have to be real expensive, you can get them at Harborfreight, Lowes, Homedepot or lots of other places.
A cheap way to get a pilot hole is to use a self tapping sheet metal screw and go slow at first, instead of a punch but if you do use a punch go easy with the hammer, smaller is better here, even a nail will do in a pinch. Also I have found that when making holes in a curved surface like the side of a barrel the hole will be somewhat egged shaped with a larger gap on two sides, the bigger the hole the bigger the gap, which can be either filled with some silicone gasket maker or JB weld and adding over sized washers and conduit nuts or if you can weld them, but I am guessing you aren't going to use a welder. Just remember the alignment of the holes is not critical here so don't sweat the small stuff and have fun.
One other thing I will mention I tried using the small intake holes but I personally prefer one larger 2 to 2 1/2 hole, bending down in the middle of the night or day for that matter to adjust multiple intakes is not something I enjoy, just a thought.
Dave