No, a dremel is not the right way to cut the line. When you buy the flaring kit sometimes a tubing cutter comes with it. Otherwise buy it separately. Trust me when I say to buy a quality kit. Some cheaper kits do not flare the brake line enough and the line will leak when you bleed the system. I've had bad luck buying the kits from parts stores. The best one I've had I actually bought from Home Depot in the plumbing dept.
I have a manual setup with '86 SVO brakes up front, Wilwood disks on the rear, braided lines front & rear, a line loc, and an '86 SVO master cylinder. I have a lot of experience with this and this is my opinion. But don't only take my advice. Hopefully others will reply too. Good luck!
