I repair and service Espresso machines for a living, so I see a lot of these day in day out. For the most part I believe the process of manufacturing the holes in a filter basket involves punching the holes into the basket from the outside, then lightly grinding the inside surface to remove the burrs left from the punching process and expose the 'tip' of the punched holes. Not sure how exactly they control the hole size, but the control of espresso extraction speed is more a function of the grind of the coffee, quantity of coffee and the tamping force used to compact it into the basket, not so much the hole size in the filter basket.
Ah yes, I can see that now, thanks for that. Somehow etching just didn't look right and I wondered about the square holes in some of my baskets. It didn't even occur to me that they were punched, but of course. D'oh!!
You're absolutely right in that traditionally the extraction speed is controlled by grind, dose size, and tamp. However in this instance the OP was wanting to use pods, where none of these variables are adjustable. My concern with trying to create a basket by drilling holes with a dremel was that the basket would provide absolutely zero back pressure, and with none of the traditional variables able to be tightened up, it would be difficult to produce anything other than gushers.
One thing I would ask the OP (and similarly those who lurk) is why you want to produce lattes on board? It may sound like a stupid question but the reason I ask is that I've seen similar situations coming up many, MANY times with people buying espresso machines for their homes. Australia is almost 100% espresso based outside the home, the only time you'll see filter coffee here is by caterers at conventions etc.; it's always crap. Indeed Australia has the highest per capita home ownership of espresso machines in the world. A typical scenario is that somebody will decide they want good coffee at home instead of just at a cafe, so quit the instant coffee, buy a cheap "espresso machine" and a pack of ground coffee from the supermarket. The result is poor, so maybe they upgrade the machine, same coffee. Still poor, so next maybe comes a grinder and whole supermarket beans, still poor. Another upgrade, this time perhaps from a speciality retailer who suggests buying fresh beans from a good roaster. Bingo, finally some half reasonable coffee. The point I'm hoping to make is that sometimes people associate espresso with "good" coffee and any other method as "bad" coffee. The problem isn't with the brewing method, it's with the beans being used. People say they want to be able to make espresso based drinks at home, hence need an espresso machine, when in fact what they ACTUALLY mean is they want better QUALITY coffee at home. Espresso is simply being used as shorthand for "good".
Sorry for the long-winded post, but it's also for the (hopeful) benefit of those who lurk and may find themselves in a similar situation at home. If the answer to the question is you want an espresso machine because you only like to drink espresso based drinks, or you want to boast about having an espresso machine onboard etc etc then I have no doubt with all the clever minds here you'll figure out a way to get your current machine to take pods. BUT I can pretty much guarantee the best you can look forward to (for reasons I won't crap on about here) is mediocre coffee. IF on the other hand the answer is that instant coffee tastes like shite and you want GOOD tasting coffee onboard then there are other means that WILL produce excellent coffee and are far cheaper; it's all about the bean.
As you can tell I'm a big fan of the Aeropress (for some situations) and they can be purchased for peanuts. BUT they MUST be paired with a grinder. If you're not grinding your coffee just before you brew it you're drinking stale coffee, no ifs, no buts about that. There's a rough rule of 3s in the industry, coffee lasts 3 minutes after grinding, 3 weeks after roasting, and 3 years after harvesting before it's stale and should be thrown out just like stale bread. The Kyocera hand grinder I take away with me is perfect for the Aeropress as you put the whole beans in the top and that snaps shut, while the grounds fall into a clear container on the bottom that screws on. It just happens that the bottom container is the perfect size to tip upside down into the Aeropress and not even 1 spec of coffee makes a mess.
The final, and absolutely MOST critical ingredient is quality beans. If you're buying beans from a supermarket they are stale (forget the foil packaging, it's porous to oxygen). They're probably also crap to begin with, multi-nationals screwing everyone for the lowest bid. Either find a good local roaster or order through mail order (and at first I would suggest the latter). Two roasters I can recommend in north America are Intellenstsia Coffee
Intelligentsia Coffee and Tea | Intelligentsia Coffee & Tea and 49th Parallel
49th Parallel Coffee Roasters.
Of course none of the above may be applicable to the OP, but I know a lot of people lurk here and I've witnessed countless people waste a heck of a lot of money on crappy department store "espresso machines" only to be terribly disappointed with the coffee they can produce at home. Yet all that was needed was an Aeropress or French press, a grinder and GOOD QUALITY, WELL ROASTED FRESH BEANS.
Pete
Incidentally I live 6 months of the year from a suitcase, hence my attraction to easy, fast, and no mess means of producing quality coffee. The beauty of the Aeropress in my situation is that it's made of food grade plastic and seems pretty much indestructible. The grinder, press and some whole beans take up about 1/3 size of a typical lunch box. The process of grinding the beans (the longest process) and brewing the coffee takes only a few minutes, not a heck of a lot more than making an instant, so it may be of interest to those here who work in a shop and are over drinking crap coffee all day.