If you were going lengthways I would agree with Stick, use the TS and a dado stack but it's very hard to push a post sideways across a table without binding. I would probably use guide rails just like you are but I would cut some free hand grooves almost to depth with a circular saw first just a little short of full depth and inside the lines at least 1/8". Then I would take a chisel and snap off the pieces between the cuts. Then use the router to full depth to finish the groove. In the long run that way is just as fast or faster and much easier on the bit and router. You could use a 1.25 straight bit if you want, especially if you hog out the waste first as suggested.
There's no reason why you can't use multiple guide rails on your jig. Just attach them to a runner that sits on the side of the post(s) that is thick enough that you can cut the 3/4" deep groove in it and still have enough meat left to keep the guide rails stable. I'm just guessing, but I think you are using the guide rails to butt the router against. If you use a pattern bit instead you can make the jig with as many groove guides as you want.
Template Bits - Lee Valley Tools The advantage of making your jig this way is that every set of grooves on each post will be identical.