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I'm still very new to routers so forgive me for this basic question. But what's the difference between a straight bit and a panel pilot bit?

I'm looking to do a project where I cut out a portion of a 3/4" plywood in the middle. I'm trying to watch some videos and it seems to me that a straight bit can do the job.

Can anyone please enlighten me?
 

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Welcome to the forum, @springroll .

I woud find a straight cutter more versatile. Either way you would need some sort of template or fence to guide the cutter.
 
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Are you going to cut a hole of some sort or just take off a little wood? If you are cutting straight through, then use a jigsaw. Once the hole is cut you can smooth out the edges with a straight router bit and template.
 

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What James said. Rough cut with jig saw about 1/8 or so smaller than the final opening. ,Then use a top bearing straight or trim bit and a pattern of the correct opening size to trim to exact size. Looks great. Make your pattern with enough extra material so it can support your router. If the opening is square, you will need to chisel out the corners that the bit leaves rounded. I always have to think about top vs. bottom bearing. Top is always closest to the router...counterintuitive to me. Here's my reminder picture.

Eye Font Cylinder Gas Auto part
 
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