I came up with this idea a few weeks ago.
Spray a tiny shot of spray glue on a small strip of aluminum foil.
Press foil on one corner of the wooden blank leaving some of the foil dangling over the edge.
I use a cheap multimeter with a continuity buzzer to perform the calibration. Just about any continuity tester will work. You can also make your own with a LED + resistor + battery or Buzzer + battery.
Attach one alligator clip to the dangling foil and the other to the bit.
Lower the z axis slowly until continuity occurs.
The Z axis is at now at zero.
This should be good enough for woodworking - you can always mic the foil and add the difference for greater precision.
Comments?