Using Eagle (rev7, 8 and 9) and pcbgcode I am able to reliably mill/"etch" boards with 0.01" tracks and gaps.
For what it is worth, my setup is as follows:-
Stepcraft CNC 420 router with UC100 motion controller and UCCNC control software on Windows PC.
Small (6" x 8") vacuum table milled flat in-situ on router.
"Chinese" vane type vacuum pump
Home made touch probe interfacing to UCCNC software. Z0 set to better than 0.001" of copper.
Low cost 30 degree milling cutters ( 0.008" (0.2mm) cutting "point") - readily available on Ebay.
Attached is a picture of an SMD board recently made using the above.