Step one, chuck the 1/16 bit in the drill and drill a hole perpendicular to the length of the nock, into the flat side. Your hole should be about an 1/8" from the deepest portion of the string notch. You want the hole to hit the very back of the hollow portion of the nock. I placed the drill bit in the hole so maybe it would give you an idea of what i mean.
Just drill through until you hit the hollow.
Ok, now we need to bore out the inside of the nock to accept the light. So chuck up the 11/64 bit and get after it. I recomment putting the nock in a vice or a pair of pliers for this because i doubt you can hold the nock once the bit really gets a bite. Dont romp down on the vise, just close it enough where the nock cant spin. The eason nocks have two flat sides that sit against the jaws nicely. Do not stand on the drill drigger either. Just kind of tap it to ease the bit in slow. Every now in then pull it out to let the debris come out. If you go too fast you will get the nock hot and it will warp. Of course you want to go nice and parallel with the sides of the nock so you dont come out the side. Just take your time and keep going until you can see the bit through the hole you drilled in the side.
Go ahead and gently test fit the light to make sure you used the right bit. The light needs to slide in and out pretty freely.
Now we are ready to glue. Before we start, let me tell you that it is very critical that you do not get any glue on the junction between the plastic collar and the battery. These lights work on a very simple system. When the LED is pressed in, it contacts the battery and comes on. When pulled away it goes off. Therefore you can see how critcal it is that that junction be able to move freely. You can do it however you like but i prefer to insert the light (light end first) with the small strip of metal that goes from the batter through the collar, facing down. That just keeps it away from where ill be gluing from.
Oh and btw, when you look through the hole you drilled in the side, you should not be able to see more than about half the plastic collar. If that looks good, set the nock in a vise (or some holding device) at about a 45 degree angle. That way when you put glue in the hole, it will get in there good, but stands a better chance of not gluing the junction together. Well go ahead and very carefully put glue in the side hole a drop at a time. Give each drop a chance to drop in before adding another. I usually only do two or three drops. I dont want to risk getting too much in there and gluing the junction.
I gotta eat right quick and ill be back to finish.