Here's my scrap wood circle jig. I use it for baffle holes, recessed circular cuts and the like. The router is the cheapest I could find, about 35 euro's. The router is working fine for me, though I do have to check regularly for screws coming loose.
It uses metal for the point where it turns rather than just a hole in the wood, so it will retain precision much longer. The threaded thingies are made out of long threaded rods (sold per meter, don't know the name in english) instead of the rods from the parallel jig that came with the router (I want to use that jig as well at times). Because a router gives strong vibrations, I used self-blocking nuts (with the nylon ring in it, don't know what these are called in english either). The 3mm bolt for centering is stored in a 3mm hole in the jig when it is not being used.