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We are thinking that the round nose bits work best for sign lettering. They seem to leave a better cut in the bottom...round bottom vs. V bottom.

Does anyone have an opinion on proper bits for sign making?

We've tried straight, V and round nose. All three work ok.:moil:
 

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AOG, all three of the types of bits you have asked about above will work fine. I think your answer is embedded within your question - you prefer the look of those cut with round nose bits. Outdoor signage sometimes benefits from letters with that curvature for ease of maintenance. People that use straight bits for outdoor signage get poor mileage from their toothbrushes! <haha> OPG3
 

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I prefer V groove, but I believe that it is personal preference. I think for a wider lettering a round nose will clean out the bottom better than the other two in terms of efficiency. I only use straight bits when I want to make raised letters
 
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