Yes... you can use it with a regular drill. The first intake relief you do and the first exhaust exhaust relief you do, will take the largest portion of your time and attention.
Measure your existing valve relief and your current piston to valve clearance. Subtract your current clearance from your desired clearance. Find a feeler gauge this thickness and set aside. Install the Isky tool into the valve guide and torque the head down.
There's a locking ring on the Isky tool. Take the feeler gauge you set aside from above. Push the Isky tool all the way down into the valve guide until it stops against the TDC piston surface. Put the feeler between the locking color and the valve guide. Tighten the locking color so that it doesn't move. Attach the drill and drill the tool into the piston surface until the locking color mates with the valve guide surface.
Re-clay and re-measure to ensure your clearance is correct. Repeat above until it is correct. Once your Isky tool is set, just rotate to all the other pistons (at TDC) until all 8 intake are done.
It requires removing and re-torquing heads for each cylinder. Once around the block for intake and once around the block for exhaust.
Plan to have lots of time and patience.
Edit: I'm not sure what you mean by arbor either. The tool itself is the arbor. I think you might be talking about the wrench. It takes a little longer to use but greatly reduces the chances of screwing it all up during cutting and going too deep.
What about metal shavings getting between the piston and the cylinder wall. Anyway to stop this? Also, do I use the heads I will be putting on the engine or my junk E7's?