Thanks to anyone who was interested in my post, I managed to find a suitable fix for my needs, it is an adapter collet that steps down from 1/4" to 1/8" (6.35mm to 3.2mm).
Trend CLT/SLV/3263 Collet sleeve 3.2mm to 6.35mm Collet sleeves
I have a Erbauer ERB210C router that I am fitting to a cnc router table, I want a collet that will allow me to use dremel bits for producing fine detail. Could anyone post a link for this part.