A Dremel tool is almost irreplaceable if you do any amount of home gunsmithing. I find myself using it almost every time I work on a gun. The cutting wheels and various cutters are used the most often.
I just helped a friend a couple weeks ago run some compressed air lines in a warehouse, and we used black iron pipe. Pretty sure galvanized can be used, as well. A bit more difficult to work with than copper, but a good deal cheaper.