#1
i bought this truss rod from stew mac

http://www.stewmac.com/shop/Truss_rods/Adjustable_truss_rods/Martin-style_Adjustable_Truss_Rod.html

its 7/16" wide

could i get away with using a half inch bit? or would it wiggle too much?

also the depth is 13/32" which is .40625" of an inch. how many passes should i do?
#2
A half inch bit would be fine. Do 2-3 passes depending on how strong your router is.
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