I would go with HSS as it will handle most of the materials we are likely to encounter. A bit of cobalt mixed in will not hurt. The Carbide ones will come in handy if you need to work with poor cast iron but they are easily damaged if knocked or dropped.
I generally just use HSS, I get very cheap ones from a supplier in Hong Kong which I use for general work and keep the better Dormer ones for when it really matters, and the FC-3 ones for the smaller stuff (thats on an X3)
And remember that slot drills can be plunged unlike most end mills which are not center cutting.
The small 3 flute disposable cutters can work out quite cheap, the only disadvantage is the collet holder can get a bit close to any hold down clamps as they are shorter than a standard cutter.
Jason
Edited By JasonB on 19/11/2009 07:29:10