I used a 1/8" rabbit bit on my router to route for the 3/4" t-molding. Word of advice: Route for t-molding BEFORE you paint. I put a few scratches in the finish paint job while I was routing. I didn't think about it before, but now it makes sense. In any case, here is a picture of what the routed edge should look like before the molding is installed.

Here is a drawing of what the bit looks like. Truth is, I used the router bit for the t-molding, the returned it to Home Depot.. it was close to $25 for the bit, and I only needed it for about 10 mintes so I never took a picture of it. So this is a facsimile of what it looks like. Once you put it on your router, you actually set the shaft-depth and then tighten it up so that the bit is at the right depth to be exactly in the middle of the wood. The yellow circle-part of the bit is the part that digs into the wood and with the guide, it cuts an exact depth all the way around. I actually turned my cabinet on it's side, then put the router down flat on the side of the cabinet and routed around the edge. You don't have to think twice about keeping a straight line at all since the router is already locked into place to cut exactly in the center of the edge and the guide keeps the cutting depth just right.

I ordered 40 feet of t-molding from t-molding.com. You'd think that 40 feet is way too much, but I used all but 3 feet of it.

Using a hot-glue gun I installed the molding. I usually put down about 6-8" of glue at a time and then held the t-molding in place for about 1 minute. Be sure not to do a long strip AND a corner at the same time, it's harder to hold. Take your time, this is a detail that will make your cabinet look GREAT if done well. The angles that defy gravity... are hard. If you have the patience, you can put your cabinet on it's back while gluing these angles to keep the hot glue from dripping on your final paint job.

On a side note, I bought a 24-pack of glue sticks for the project. I was thinking that would be WAY too much glue, but it turned out that I used ALL but 1 stick. Keep that in mind and it may save you an unexpected trip to Home Depot. :)