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Before painting. You want a fine sharp hobby knife or scalpel. Place this in the centre of the barrel and turn a few times to create a pilot hole. Then take your pin vise drill and appropriate bit and drill the hole, taking care to be gentle and not remove too much but leave an even hole.
Yes, before painting. It's part of the modelling, so it makes sense to do it before priming.
I personally find it easier to use an awl to create the indentation needed to center the drill properly. I find it quite difficult to center the hole using a hobby knife. I don't know if it's because it's shiny or asymmetrical, but I often lend offset with those.