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Yes, this model does accept 1/2" collets and can get them at either Sears.com or at your local Sears store.
Here is a link to the manual.

http://www.managemyhome.com/mmh/lis_pdf/OWNM/L0810037.pdf

Jack

 

Hi - I don't normally completely disagree but I don't think that one will take the 1/2" collet.
CRAFTSMAN | Model #32017541 | ROUTER | FIX BASE | SearsPartsDirect.com

I was looking for a 1/2" collet for an old craftsman router a few months ago. The resident "expert" on that manage my home website coughed up a part number, supposedly for a 3 collet kit: 1/2, 1/4 and 3/8. Sears parts people had never heard of the kit nor the number. :angry:

 

is this the one

http://www.sears.com/shc/s/p_10153_...41000P?vName=Tools&cName=Portable+Power+Tools&sName=Routers+&+Laminate+Trimmers

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I guess I'll find out, I ordered two 1/2" collets...

The trouble was, they listed only a 1/4" collet on one of the parts blow ups and both 1/4" and 1/2" on the other. I guess I was looking at the wrong one initially.

 

The product description says it does accept both collet sizes.
Product Description

Durable Craftsman 9.5 AMP, 1-3/4 HP 100% permanently sealed 100% ball bearing single speed motor delivers 25,000 RPM. Ample power to router or plunge through soft and hard woods alike. Tough, machined gear box provides efficient power to the router bit. Soft start motor technology prevents router take offs as the Craftsman motor slowly increases to its full capacity allowing plenty of time to securely grip both handles of the router for superior feel and performance before engaging the router bit. Positive cam locking buckle system secures the router bit at the desired height and prevents the router from self-adjusting during use. Steel rack and pinion system allows for micro-height adjustments in 1/64-inch increments or rapid height adjustments in 1/2-inch or more. Extra large dual full-view windows provide a clear sight-line to the router bit and work surface from both the front or back of the router. Up front, spring loaded, push button spindle motor lock allows for quick one wrench bit changes. Built-in, green Live tool indicator lights up when there is power to the tool.

* Die cast aluminum base
* Steel rack and pinion system allows for micro-height adjustments in 1/64-inch increments or rapid height adjustments in 1/2-inch or more
* Machined router base provides a level platform to properly secure and level the appropriate router sub-base
* Buckle latch allows for quick motor pack removal from the base for easy bit or sub-base changes
* Up front, spring loaded, push button spindle motor lock allows for quick one wrench bit changes
* Ergonomically designed all position handles reduce vibration and user fatigue while providing a superior grip and feel at virtually any position
* Three built-in LED work lights clearly illuminate the work surface
* Live tool indicator lights up when there is power to the tool
* Router includes: Self releasing 1/4 in. and 1/2 in. collets, router how to book, front and rear chip deflector with vacuum attachment and wrench

Jack