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If you are having that much trouble call Pimo. If you can refrain, don't muck with the edge until you have talked with them.
The easiest way I ever found to sharpen a spade bit is on a bench grinder. A dremel would be difficult to manage a consistent profile on both side of the bit. It only takes a small amount of screwup and suddenly you're only cutting with one edge.

Cut the shank down on the bit as well. I have taken about two inches off all my Pimo bits. You get a lot less chatter that way.

Don't worry! All of my original bits were hand made in my shop - I promise you can do it. I used a grinding wheel (60 grit I think) to rough shape, then I actually used 120 grit on my regular stummel shaping wheel to touch up and relieve the trailing edge of the bit. You can use a diamond hone to clean it up, but the grooves on a paddle bit make that a bit more difficult. If you have trouble with the shape, I've seen guys use circle/oval templates to trace the profile they like and then cut a piece of paper to glue on the bit as a guide. Easy peasy lemon squeezy.

All of that said, you do need to use a fair bit of force for these things to cut. Anytime I use these bits now, I usually take an un-profiled paddle bit to get most of the hole drilled. I really just use the profiled bits to round out the bottom. I don' want to have to resharpen these, and there's no point putting a rounded edge in the first 3/4" of my chamber...

And Scottie is right, cut those babies down a few inches.

YEah... hell, if I can cut down a spade bit, any moron can.

Thanks everyone. It works now. My girlfriend came over and told me to "Stop drilling it like a wimp" and well the bit worked when i didn't drill like a wimp! haha I feel so dumb..

Silver and Deming bits drill better with less chatter and, IMHO, are easier to shape yourself and sharpen. Chuck them up in a drill with 1/2" chuck and spin them in reverse while grinding them on a grinding wheel to the profile you want. Then, grind a relief by hand on the grinding wheel. Touch them up with a dremel and or files then sharpen them with diamond files or a hone. Voila! much easier than spade bits and they work better too. A touch more expensive but not too bad and there's no need to get too fancy. I never use spade bits anymore. The only thing I don't use S&D bits for is drill after shaping. For that, spoon bits are best.