Paul, I have a door hinge mortising jig from Sears that clamps on the door and the Jamb. It has a couple of different hinge templates for round corner hinges. Works with a normal router and assures a good match door to jamb. I think I spent about $50 bucks 20 years ago.
I use a carbide spiral bit with an uptwist (to clear the dust) in the table and a stop block mounted to the fence. I make my first pass pretty shallow (maybe 1/8 inch), then quarter inch increases till the mortise is the proper depth. Tenons are made using the same basic technique, though with a different bit. There's a great article in the Fine Woodworking On Joinery book.
Have you looked at the Powermatic? Its a lot more money, but seems to be very well built.
The Delta set that mounts on a drill press will do a good job. I've had one for about five years now and it does OK. Although many times I end up just using a Forstner bit and a chisel because it is quicker to set up.