I've always done it vertically. Both with wing cutters and straight cutters.
I am currently using a 5/16 Bosch straight cutter with great results. But I have the advantage of infinite feed and shaft rotation control
to dial in the settings. Here's a something that I just found on Amazon that might fit the bill for you. One thing to always consider
on wing cutters is max speed.
The big 2 inch ones are limited to 12000 rpm. This one may be able to rotate faster with out the fear of the carbide tip coming off.
http://www.amazon.com/CARBIDE-TIP-6-WING-DRAWER-CUTTER-THREADED/dp/B0012JI6AY