Hahahah,,, geesch, Mikey,,, sounds like you must resemble the "tazmainian devil" workin that router around your house,,,
Well ya came to the right place,,, lots of really nice knowledgeable people on this forum,,,ready to help you if they can,, Also I would highly recomend watching or setting up the VCR to record the "Router Workshop" on your local PBS station,,, it will give you tons of tips and I guarantee it will help you in becoming a proficent router user,, it sure opened my eyes for using that thing.
Seems you already guessed what you are doing wrong with some of your problems,,, ie, burning the bits,,, sounds like ya are pushing it too hard,,, take several cuts to get where you want to go to your finished cut, if you have to remove a lot of wood. It will help you prevent the burring and ruining of your cutters,,,
2 1/2 hp routers are an adequate amount of power for most routing chores so you are not lacking in power,,, The variable speed is so you can slow down the router for the times you are using very large bits like you might in making the raised pannel sections of raised pannel doors,,
I got ya on the "bunny cut",,,, and the router bit is going to cut what ever profile it is made into,,,,, you just have to think about what it will look like on the wood and then make sure you slide the wood into the bit the right way,,, you maybe should have used the bit on the door in the other Plane if that cut is not what you wanted ? Hard to say with out seeing the results.
Try looking on Ebay for router bits to save a bunch of money,,, and for that router,,, I would suggest you stick with 1/2 inch shanked router bits,,,they are stronger and will take more feed speed then the 1/4 inch ones,,, its prossible to snap them off with a heavy hand,,, (Been there,,Done that )
Read the replies you will be getting on this forum,, it will help ya and if you can,,, check out the TV guide for the times and channels of the Router Work Shop,,, and best way to get better is to keep on spinin them bits, and makin wood chips,,,,
oh and by the way,,, nice to see you on the router forum,,you'll like it,,,
It seems like every where I go,,,,,,,,,,,,,,,,,,,,,,,,, there I am...